Village Funds Optimization to Protect the Poorest: Sri Mulyani

Image source: Ministry of Finance PR

In a bid to optimize the use of the National Economic Recovery (PEN) budget and measures to alleviate extreme poverty, the Government has set a minimum regulation of 40 percent of the Village Fund for Village Direct Cash Assistance (BLT) and expands the criteria for Village BLT recipients.

The policy is stipulated in Presidential Regulation Number 104 of 2021 on Details of the State Revenue and Expenditure Budget (APBN) for Fiscal Year 2022 based on the results of the consensus between the Working Committee on Transfers to Regions and Government Village Funds and the House of Representatives (DPR) Budget Agency in the 2022 State Budget Draft Law.

According to Minister of Finance Sri Mulyani Indrawati, the allocation of the funds is flexible as long as the optimization of the use of Village Funds can protect the poorest.

“Although the Presidential Regulation has regulated general policies, we issued Minister of Finance Regulation 190/PMK.07/2021 on the management of Village Fund and the provision of Village Fund details in each village,” Sri Mulyani said at Jakarta, Monday (01/24).

The flexibility of Village BLT allocation can be approved by regents or mayors since they are more aware of the situation and condition of their respective villages.

“If a region is already prosperous and they decided not to use Village Fund for Village BLT, that is okay. Tell it to the regional head to get approval,” she added.

The Minister also expressed hope that the regions will remain in harmony with the spirit of the APBN to protect the people from health and economic issues amid the pandemic even though they are given flexibility in the use of Village BLT. (Ministry of Finance PR/UN) (GWH/EP)