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The breakdown of General Allocation Funds (DAU) for government employees
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( Courtesy of Finance Ministry)
F
inance Minister Sri Muyani has increased the transfer of allocated funds to regions for the year of 2024. Under the new policy, the funds will amount to Rp 857.59 trillion (US$54 billion), an increase from the Rp 814.72 trillion allocated this year.
The largest component of the transfer is for general allocation funds (DAU). At Rp 427.69 trillion, it is an 8 percent increase from the amount of disbursement in 2023, which amounted to Rp 396 trillion.
The fund amount is given by the central government from the State Budget (APBN) to the regions in two parts; the first portion of the DAU, amounting to Rp 343.53 trillion next year, is distributed in the form of funds with no determined use, meaning that its use is handed over according to the regional authority, but refers to regional development priorities.
Meanwhile, the second portion is handed over for use specifically in the fields of education, health, public works and public services. The value will be Rp 84.17 trillion in 2024.
The distribution of the DAU in these two forms is being implemented for the first time after the issuance of Law No. 1 of 2022 concerning financial relations between the central government and regional governments, or the HKPD Law.
"So, there is the DAU, which use is not determined, and second is the DAU which use is determined, or what we usually call DAU earmark or DAU specific grant," said the Finance Ministry’s General Transfer Funds Director Adriyanto.
The specific grant will be used for physical and/or non-physical activities in order to improve the quality of basic services in the education sector and in basic health services.
Furthermore, the public works sector will see an improvement of subdistrict funding support, which will be used to provide funding support to the district or city level regions in fulfilling budgeting for subdistricts according to technical instructions from the Home Affairs Ministry, as well as to support the salaries of civil servants in the region.
For the latter, the support is allocated to the formation of government employees with work agreements (PPPK) in the form of payment of basic salaries and allowances attached to the PPPK formation. The Technical Personnel for the Fiscal Year (TA) in the year 2023 is used to pay salaries and allowances attached to the 2022 and 2023 PPPK formations, which were appointed in 2023.
"In 2024, the DAU allocation for all regions will increase due to the additional burden on PPPK payroll requirements for 2022 and 2023, which will be lifted in 2023 and 2024, as well as the additional burden on employee expenditure requirements to meet the 8 percent salary increase," said Adriyanto.
The DAU set aside for the PPPK payroll in 2024 is currently Rp 41.4 trillion. It is to be divided into salaries for 2022 appointed in 2023, 2023 appointed in the same year and the remaining 2023 formations, which will be appointed in 2024.
"For the number of PPPKs that will be appointed, the data comes from the Administrative and Bureaucratic Reform Ministry and/or BKN [the National Civil Service Agency] in accordance with statutory provisions. This is an illustration of the size of the earmark DAU," Adriyanto further explained.
The details of the disbursement of funds that are divided into the PPPK formations for 2022 that were appointed in 2023 and worth Rp 8.3 trillion consist of 320,223 teachers, 92,151 health workers and 27,594 technical personnel.
Meanwhile, for the 2023 formation appointed in the same year, a total of Rp 17.4 trillion is divided evenly for 709,219 teachers, 185,448 health workers and 13,193 technical personnel.
Finally, a budget of Rp 15.7 trillion is allocated for the 2023 formation, which will be appointed in 2024, with details of 296,059 teachers, 154,342 health workers and 42,826 technical personnel.
"So, once again for the PPPK formation, the government, through consistent DAU allocation, also continues to budget for the PPPK formation," Adriyanto concluded.
Source: The Finance Ministry
