Jakarta, Aug 20 (Antara) - The government announced its 2015 budget
plan last week, which comprised Rp640 trillion funding for regions,
including 1.4 percent in funds for village development, amounting to
Rp9.1 trillion.
Finance Minister Chatib Basri said that, ideally, the village
development allocation would be Rp64 trillion, or 10 percent of the
transfer of funds for regions, set at Rp640 trillion in the draft 2015
state budget.
"Based on the law on villages, it should be set
at 10 percent of the transfer of funds to regions. So, if the amount of
fund transfers to regions is Rp640 trillion, the allocation for village
development should be set at Rp64 trillion, or ten percent," the finance
minister said.
Chatib admitted that the allocation of Rp9.1 trillion for village
development funds is not adequate, as the funds were taken from
ministries and state institutions' old budgets for village prosperity
improvement programs.
"The Rp9.1 trillion is a budget for ministries and state institutions
which is to be used for village improvement development. Thus, the draft
state budget will only serve as an initial allocation for village
development. If it is not adequate, the next government can increase the
amount," the minister said.
The current government, which drafted the budget, could not increase
the allocation because the current budget only serves as a baseline.
"The next government could later increase the amount of funds for
village development. It can use funds from other sources, such as the
National Program for People Empowerment (PNPM). This is because the
current draft state budget only serves as a baseline. If the next
government wants to revise it after considering its fiscal aspects, it
is welcomed," Chatib said.
The Village Fund allocation is part of the transfer of funds for
regions, as regulated in Law No. 6 / 2014 on Villages. It is allocated
by the government for financing the development and empowerment of
village communities.
Based on the Rp9.1 trillion fund allocation, each village of about 73
thousand villages across the country will receive some Rp150 million.
However, if other forms of allocations are taken into account, each village will receive about Rp550 million next year.
According to Director General of People and Village Empowerment of Home
Affairs Tarmizi Karim, villages in Indonesia will each receive some
Rp550 million from the Village Fund Allocation (ADD) scheme and from the
state budget in the form of transfer of funds to regions in 2015.
"For 2015, each village will receive about Rp550 million in development funds," Tarmizi Karim said on Wednesday.
He added that about Rp150 million would come from the transfer of funds
to regions (from the state budget) and about Rp400 million from the
Village Fund Allocation (ADD) scheme.
The transfer of funds to regions, set in the recently announced draft
2015 state budget, was Rp640 trillion, of which about 1.4 percent, or
Rp9.1 trillion is allocated to some 73 thousand villages across the
country for village development funds.
Actually, based on Law No. 6/2014 on Villages, the government is
required to allocate 10 percent of the transfer-of- funds-to-region
scheme.
But, according to Home Affairs Minister Gamawan Fauzi, the 1.4 percent fund is allocated as an initial phase.
For the first phase, only Rp9.1 trillion will be disbursed and be used
to increase the quality of human resources in managing village funds,
Minister Fauzi said.
The allocation of the Rp9.1 trillion was intended to teach management
skills to officials of the regions so that they would be ready to manage
when the 10 percent of the funds were allocated.
"Some of the Rp9.1 trillion will mostly be focused on human resources
training on how to manage the funds so that it will not happen that when
all of the funds are already allocated many village heads are put
inside the bars," the minister said.
The training will be conducted in cooperation with the Government's
Development Finance Comptroller (BPKP) and the Finance Ministry because
the Government Regulation (PP) on training was issued by the finance
minister.
The financial management training will be provided to prevent village
heads from abusing village funds allocated by the Central Government.
Also, the government will channel the village development funds through
the transfer mechanism by considering the size of the village
population, poverty rate, coverage of areas and the difficulty caused
by their geographical conditions.
In addition, each village will receive fund allocations hailing from at
least 10 percent of the district/municipality regional budget (APBD)
and at least 10 percent from the regional tax sharing and retribution of
districts/municipalities.
Each village will also receive Village Allocation Funds (ADD) reaching
10 percent of the fiscal balance funds allocated for the
district/municipality regions.
"There
is a sanction based on our regulation which stipulates that if the
regional government does not disburse the ADD funds, the government will
also postpone the disbursement of the funds for regional concerns," the
home affairs minister said.
Gamawan Fauzi added that state budgets for villages will be provided
in stages every year until recipient villages are ready to receive 10
percent of the transfer of funds to regions.
"It will be provided in stages and will depend on the agreement between
the House of Representatives (DPR) and the next government. So, it can
change every year. It can only be several percent in the first year, but
in the second year it can be raised to 50 percent," the minister said.
The minister explained that the allocation in stages was in line with
Law No. 6/2014 on Villages, which was enacted into law in late 2013.
The law, among others, regulates that the allocation of 10
percent of funds for villages is carried out in stages based on the
financial capability of the state.
Further, the allocation in stages is intended to prepare the regions so
they would be able to receive the maximum funds in the following budget
allocations.
"Now the amount of the funds under discussion is Rp9.1 trillion. What
is more important is that for the first year, training will be provided
on how to manage and account for using the funds.
In the
following year, in 2016, if villages are already prepared, the amount
of the funds can be increased. "If, in the first year, they have been
prepared, the funds can be raised to five percent, for example, in the
following year," the minister added.***2***
(T.A014/INE/B003)
(T.A014/A/BESSR/Bustanuddin) 20-08-2014 22:03 |
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