Gov’t Allocates Rp811.7 Trillion for Transfer to Regions Next Year
The Government plans to allocate Rp811.7 trillion for Transfer to the Regions (TKD) in the Bill on the State Budget for the 2023 Fiscal Year. The figure is higher than the allocation in 2022, that is Rp799.1 trillion.
“This is the first time since the pandemic, the TKD will reach Rp800 trillion, namely Rp811.7 trillion,” Minister of Finance Sri Mulyani Indrawati said as quoted from the Ministry’s official website, Tuesday (08/23).
The Minister stated that the rise in allocation is influenced by the emergence of several new provinces in the island of Papua and an increase in Revenue Sharing Fund (DBH) due to rising commodity prices.
TKD for Fiscal Year 2023 is focused at improving the quality of public services in the regions, including health and education services since these services are now decentralized.
In detail, Sri Mulyani revealed the TKD’s four general policies in 2023: first, to improve the synergy of fiscal policies and to harmonize Central and regional governments’ expenditures; second, to strengthen the quality of TKD management that is guided, measurable, accountable, and transparent; third, to boost the capacity of regional taxation while maintaining investment climate, ease of doing business, and public welfare; and fourth, to encourage the use of financing instruments to deal with limited fiscal capacity and development acceleration needs. (Ministry of Finance PR/UN) (GWH/MMB)