Finance Minister Postpones Most of General Purpose Grant (DAU) for 169 Regions Worth Rp19.4 Trillion
Date 23 Agustus 2016
In light of controling the State Budget , Minister of Finance as the State Treasurer has decided to postpone most of the budget distribution for Regional Transfer which is projected as underpayment budget and allocate and distribute it on the next budgets year in accordance with the State Budget capability.
The postponement in distribution of the 2016 General Purpose Grant (DAU) for 169 regions worth Rp19,418,975,064,500.00 is stated in the Finance Minister Regulation No. 125/PMK.07/2016 signed by the Minister of Finance Sri Mulyani Indrawati on 16 August 2016.
Determination of the regions and amount of General Purpose Grant which is postponed, is based on the estimated fiscal capacity, expenditure needs, and positions in the cash balance at the end of 2016, which is divided into several categories: very high, high, fairly high, and medium, Article 1 of the Finance Minister Regulation says.
The details of the regions and amount of General Purpose Grant which is postponed are stated in the Appendix of the Regulation.
Based on the regulation, the distribution of General Purpose Grant which is mostly postponed can be redistributed on the 2016 Budget Year if the state revenue realization is sufficient.
If the General Purpose Grant cannot be redistributed on the 2016 Budget Year, the amount postponed will be projected as underpayment budget to be allocated and distributed on the next budgets year by taking into account the Government’s financial capability, the Regulation says.
Considering the postponement in budget distribution, regional governments are expected to adjust the General Purpose Grant to regional revenue and expenditure according to the provisions of the law without waiting for the amendment of 2016 State Budget.
This Ministerial Regulation shall apply as of the date of its enactment Article 4 of the Finance Minister Regulation No. 125/PMK.07/2016 which is promulgated by Minister of Law and Human Rights Widodo Ekatjahjana on 16 August 2016 says. (JDIH Kemenkeu/ES) (RAS/EP/YM/Naster)