Centre Government Cut the Budget to regional Government

Center Government has cut the budget to regional government which is amount of IDR 68,8 trillion.

By: Choirul Fuadi)*

CIDISS – Government has targeted the economic growing up of 5% this year. The economic growing in next year is expected higher than this year. The minister of Finance, Sri Mulyani, she hoped, it can be true. She also identified the economic risks that might appear in the next year.

Some days ago, Indonesian Presiden, Joko Widodo approved the proposal of Finance Minister to cut the national budget (APBN) year 2016. The final decision has approved in session of cabinet plenary in President Office, Jakarta, Wednesday (3/8/2016) ago.

The cut of budget is especially for activity that assume as do not support the priority program. Such official journey and renovation or built a building. Besides that, government also approved to cut the budget to regional which is amount IDR 68.8 trillion.

The budget’s cutting is caused by the tax acceptance in the government do not comply with target and price of export commodity in Indonesia has decrease slowly. By the cutting of the budget to regional amount IDR 68,8 Trillion, it makes the regional government feel dizzy.

Nurdin Abdullah, Secretary-General Asosiasi Pemerintah Kabupaten Seluruh Indonesia (Apkasi/ Association of Regional Government Indonesia), such in finance.detik.com, said that regional government understanding the centre government intention to make stable the National Budget. But, they also need solution from centre government.

Nurdin said the difficulties that might face by regional government because cutting budget. Such as how can face to contractor who has get the tender of project, how to pay them and another problem might arise after the policy.

Because of the case, Nurdin also want solution for regional government in order to face the problem that might arise after cutting the budget. Besides that, Centre government is expected can give law guarantee to regional government if there is law effect after cutting the budget policy.

(Apkasi/ Association of Regional Government Indonesia)cut the national budget (APBN)Finance Ministerpriority program
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