Sri Mulyani: Realization for Regional Cash Transfer, Village Funds Reach Rp54.92 Trillion
The Government has announced that the realization of Regional Transfer and Village Funs (TKDD) reached Rp54.92 trillion as of January 2022.
Comparing last year’s, this year’s realization increased by 6.8 percent, according to Minister of Finance Sri Mulyani Indrawati, Friday (02/25).
“The main increase is in two sectors, namely the Allocation Fund (DAU) and the Revenue Sharing Fund (DBH). For the DAU and the DBH, Rp50.43 trillion has been distributed, higher than the previous allocation amounting to Rp46.8 trillion, while for the DBH, Rp4.16 trillion has been distributed. It is also higher than last year’s allocation amounting to Rp3.52 trillion. So, the DBH realization increased 18 percent and the DAU realization increased 7.7 percent,” the Minister said.
Sri Mulyani added that the 2022 DBH can be distributed earlier due to the higher allocation, while the 2022 DAU can be distributed earlier because regional government has ratified their Regional Budget on time.
However, the Minister acknowledged that there is a decrease in Village Funds realization because not all regions has proposed for the Village Funds distribution, adding that the expenditure of Regional Budget recorded a minus by 4.8 percent.
“The Government has only distributed Rp0.34 trillion for Village Funds. Previously, it has distributed Rp0.75 trillion,” she said.
For the record, in January, 2021, the regional governments spent Rp19.60 trillion of their Regional Budget, but this year the budget was only spent Rp18.66 trillion.
The decrease in budget realization is caused by lower expenditure in education, health, and social protection sector comparing to that in the previous year.
However, Sri Mulyani added, the expenditure in economic sector increased from Rp0.78 trillion to Rp0.99 trillion.
Furthermore, the Minister expressed hope that the realization of regional expenditure can be accelerated because it is vital to boost economic recovery in the regions. (PR of Ministry of Finance/UN) (AP/EP)