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Govt to disburse delayed regional grants in December
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Finance Minister Sri Mulyani Indrawati speaks to the media after her inauguration ceremony at the State Palace in Jakarta on July 27. (AP Photo/Tatan Syuflana)
T
he government will disburse some of the overdue general purpose grants (DAU) in December, especially for regions where the delays significantly affected regional budgets, Finance Minister Sri Mulyani Indrawati has promised.
Sri Mulyani said her ministry, along with the Home Affairs Ministry, would tightly monitor the disbursement of DAU funds in a bid to minimize negative impacts on local economies.
"We will continue to check if there is any possibility to pay out delayed DAU funds in December, especially to regions where the delay is putting pressure on budgets," she said in Jakarta on Friday.
To maintain healthy fiscal conditions for the revised 2016 state budget, the government decided to delay the distribution of Rp 19.4 trillion (US$1.46 billion) in DAU funds. The move affected 169 regions, including 26 provinces, 11 regencies and 26 cities.
Forty-two of them would see 50 percent of their DAU transfers delayed, totaling Rp 8.5 trillion.
Meanwhile, 42 other regions would have 40 percent of their DAU transfers postponed, amounting to Rp 8.3 trillion and another 42 areas would see 30 percent of their DAU funds totaling Rp 3.7 trillion deferred. The remaining 43 regions will see only 20 percent of their DAU funds delayed, amounting to Rp 1.9 trillion. (ags)
