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Govt ensures delayed grants won’t affect civil servant salaries
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Central Statistics Agency (BPS) head Suryamin (from left to right), Industry Minister Airlangga Hartarto, Manpower Minister Hanif Dhakiri, Public Works and Public Housing Minister Basuki Hadimuljono, Finance Minister Sri Mulyani, Economic Coordinating Minister Darmin Nasution, National Development Planning Board (Bappenas) head Bambang P. S. Brodjonegoro, Health Minister Nila Djuwita Anfasa Moeloek, and Investment Coordinating Board (BKPM) chairman Thomas Trikasih Lembong hold a press conference on the 2017 state budget in Jakarta on Aug. 16. (JP/Anton Hermansyah)
T
he Finance Ministry has promised that the delayed distribution of the general purpose grants (DAU) will not affect the remuneration payments of civil servants in regional administrations.
According to the ministry's director general of intergovernmental fiscal relations, Boediarso Teguh Widodo, the delay in DAU distribution for several regions was decided by taking into account the cash-flow adequacy of each region for financing their daily operations.
"Therefore, the delayed DAU should not affect the remuneration payment for civil servants, as well as infrastructure spending," he said on Tuesday in Jakarta.
In a bid to maintain a healthy fiscal condition for the 2016 revised state budget, the government has decided to delay the distribution of DAU worth Rp 19.4 trillion (US$1.46 billion). It affects 169 regions, comprising 26 provinces, 11 regencies and 26 cities.
Forty-two of the total 169 local administrations would see 50 percent of their DAU transfer delayed, totaling Rp 8.5 trillion, Boediarso explained.
Meanwhile, 42 other regions have 40 percent of their DAU postponed worth Rp 8.3 trillion, 42 areas have 30 percent of the DAU deferred totaling Rp 3.7 trillion, and 43 regions will see 20 percent of the DAU delayed worth Rp 1.9 trillion. (ags)
