Skalanews – Observer of the Institute of Economic Development and Finance (Indef) Imad Abdullah explains, that the regional transfer in the state budget in 2015 has been indicated to flunk in realizing its target to bridge the distribution of development in disadvantaged areas. 

“Every year the nominal value of the regional transfer is always increasing. However, in the ratio of components of the state budget, it does not change significantly, approximately 0.3 to 0.35 percent of the state budget,” says Imam in Jakarta, Friday (3/20). 

However, says Imam, a striking change can be found in the addition of the Village Fund, which now amounting to Rp20.8 trillion. However, he argues, there is one thing that needs to be criticized, namely the aspect of readiness of the officers in managing the large sum of budget. 

“Are village officials ready when receiving such enormous fund? If applied like this, then the ideals of regional development will not be achieved, because chances are that the budget will evaporate. It will be so much better if the government starts a pilot village first,” said Imam. 

The government raised the allocation of Regional Transfer fund and the Village Fund in revised budget of 2015 to Rp643.8 trillion, an increase of Rp17.6 trillion compared to the allocation in the initial budget. 

Meanwhile, the Village Fund allocation in the revised budget 2015 has been set at Rp20.8 trillion, an increase of Rp11.7 trillion from allocation set in initial budget that amounted to Rp9.1 trillion. (ant/nra)

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The Institute for Development of Economics and Finance (INDEF) is an independent and autonomous research and policy studies institution established on August 1995 in Jakarta
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