JAKARTA (TheInsiderStories) - Indonesia Finance Minister has issued ministerial decree on the efficiency of regional government spending by Rp68.8 trillion (US$5.25 billion) in the 2016 Revised State Budget (APBN-P), which will not impede economic expansion in the region. Efficiency is necessary in order to control government spending by taking into account adjustments to basic macroeconomic assumptions and revenue targets state.
“The government has done a study that measured and prudent in taking control policy on transfers to the regions in order to avoid the negative impact of both the growth efforts of the regional economy as well as the development gap between the center and the regions, and between regions,” Director General of Fiscal Balance Boediarso told Investor Daily, Sunday (21/8).
Budiarso said the delay of regional government expenditure covers delay of the transfer of general fund allocation (DAU) to the regional governments amounting to Rp19.4 trillion, delay of the transfer of portion of profit sharing funds (DBH) amounting to Rp20.9 trillion, efficiency of special funds allocation (DAK) worth Rp6 trillion on grounds that the regional governments would not be able to meet requirements for DAK (physical), which are based on realization performance.In addition, savings of DAK non-physic worth Rp23.8 trillion are set due to a decline of the number of teachers with certificates who have the rights to obtain professional compensation (TPG)from 1.3 million to 1.22 million, as some of them have entered retirement age, as well as natural saving of Village Funds amounting to Rp 2.8 trillion, because not all villages are qualified to receive the Village Funds.
“The control of funds transfer to the regional governmetns and Village Funds are carried out not on the type of transfer for infrastructure, such as DAK physics, however those funds transfer whose discretions are the responsibility of regional governments such as DAU and DBH. This aims to ensure that regional governments can control the management of regional funds amid difficulties being faced by the national government,” he said.
However, the budget allocation maintains expenditure to alleviate poverty, provide basic services in education, health and creation of jobs, Boediarso said.
Boediarso called on local governmnents to continue to provide the best perforance despite budget cut and improve performance in the management of regional government funds, in providing basic public services, economy and improve welfare of the people. (*)