15 provinces to get Rp 933b in contingency funds

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)