15 provinces to get Rp 933b in contingency funds

JAKARTA (JP): The government said it had allocated some Rp 933.71 billion (about US$82.62 million) in contingency funds for 15 provinces to help plug a deficit in their budget this year.

The finance minister said in a statement on Tuesday that the financial aid was part of the Rp 1.10 trillion in contingency funds set aside for local administrations under the 2001 state budget.

In total, 30 regions suffering from a deficit in their budget this year would receive the contingency funds.

The government said the funds could be used only for the financing of the regions' routine expenditure such as civil servants' salaries.

The provinces that will receive the funds are Central Java, with Rp 68.50 billion, East Java (Rp 171.30 billion), Yogyakarta (Rp 99.63 billion) and Bali (Rp 54.98 billion).

The other 11 are West Sumatra, with Rp 76.25 billion, Bengkulu (Rp 49.46 billion), Jambi (Rp 24.71 billion), North Sulawesi (Rp 133.62 billion), Central Sulawesi (Rp 13.24 billion), South Sulawesi (Rp 1.62 billion), Southeast Sulawesi (Rp 41.38 billion), West Nusa Tenggara (Rp 37.65 billion), East Nusa Tenggara (Rp 101.47 billion), Maluku (Rp 50.75 billion) and North Maluku (Rp 9.09 billion).

The government has also selected eight regencies for receiving the contingency funds. These are Karo, with Rp 6.73 billion, South Tapanuli (Rp 8.65 billion), Toba Samosir (Rp 542.18 million), Padang Pariaman (Rp 13.67 billion), Sleman (Rp 562.60 million), Jeneponto (Rp 264.04 million), Tabanan (Rp 19.26 billion) and West Maluku Tenggara (Rp 7.25 billion).

Cities that are entitled to the funds are Tanjung Balai, with Rp 28.04 billion, Padang (Rp 32.20 billion), Bengkulu (Rp 4.61 billion), Surakarta (Rp 20.7 billion), Yogyakarta (Rp 11.56 billion), Palu (Rp 762.61 million) and Ambon (Rp 17.92 billion).

The government said it had begun disbursing the contingency funds last month.

"Regions that have received funds must report their usage to the finance minister and to the minister of home affairs and regional autonomy on the 10th day of the month at the latest," the statement said.

Under the autonomy laws, regions receive greater authority to manage their own economic affairs, including their fiscal policies.

Consequently, the fiscal decentralization requires regions to tap more local resources in order to reduce their dependency on central government financial support.

The establishment of the contingency funds was based on a government agreement with the International Monetary Fund, as stipulated in the September, 2000 Letter of Intent. (bkm)