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Efficiency Conducted on Unproductive Posts

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JAKARTA, KOMPAS — General allocation funds as a result of adjustment due to failure to achieve tax target will be distributed in the second semester of 2017. The Finance Ministry urged the regional administrations to start making anticipations, one of which is to make efficiency on unproductive budget items.

Director General of Fiscal Balance of the Finance Ministry Boediarso Teguh Widodo said in Jakarta, Tuesday (27/6), that the unproductive expenditure posts include official trips, official meetings, seminars, and team allowances. The regional administrations  also need to adjust the contracts with third parties in the implementation of projects or activities funded using general allocations funds (DAU) and/or those fully funded by locally generated revenues by making more flexible contract clauses.

The DAU is distributed every month amounting to 1/12 of the ceiling. For the first semester, DAU is distributed each month amounting to 1/12 of the APBN ceiling. When there is a change of ceiling in the Revised State Budget (APBN-P), adjustments are made in the second half. The calculation is the allocation ceiling of the DAU in the APBN-P deducted by DAU accumulation which has been distributed divided by the number of the remaining months in the budget year.

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