Finance Minister Calls On Regional Gov’ts to Maintain Budget Stability
Minister of Finance Sri Mulyani Indrawati called on regional governments to maintain stability of Regional Budget (APBD).
The Finance Minister stated that regional governments tend not to be able to adjust whenever the Central Government decided to axe the revenue sharing fund (DBH) or special allocation fund (DAK).
“We want the regional governments to have more capacity as shock absorbers,” she said, as quoted from the Ministry’s website, Thursday (06/09).
The Minister observed that the regional governments need financial managers who can maintain the stability of Regional Budget when facing pressures and shocks, just as the Central Government endured.
Therefore, the Government issued Law Number 1 of 2022 on Financial Relations between the Central Government and Regional Governments (HKPD Law) to push regional governments to perform creative financing and integrated funding.
“The aim is to prevent considerable fund from the Central Government to just stay unutilized at regional banks. Also, after the fund was withdrawn from the bank, they tend to be paralyzed. They should be able to perform intertemporal and interpost stabilization. This is our hope,” the Minister said.
Furthermore, the Minister also expressed hope that the transfer to the regions and village funds (TKDD) contained in the HKPD Law can improve regional ability to create quality spending that is oriented towards national development targets. She stated that the goal is to create a multiplier effect on economic transformation and quality improvement of human resources in the country.
“So, it is necessary to continue to improve the capacity and management of regional finance in the regions. Certainly, cooperation and commitment from all elements of regional governments, ministries, and institutions are of particular importance for us to jointly maintain the economy, protect the people, and maintain the State Budget,” she remarked. (PR of Ministry of Finance/UN) (FI/MUR)