Mon, 06 Aug 2001

Bylaw on financial sharing needed

PALU, Central Sulawesi (JP): Commission C, dealing with budgetary affairs at the Central Sulawesi provincial legislative council, is discussing a bylaw on financial sharing among the province, regency and mayoralty, according to its chairman.

Helmi D. Yambas said here on Saturday that the new bylaw would regulate the financial rights of the province, regency and mayoralty, "so as to eliminate misunderstandings among the governor, regent and mayor."

He did not specify when the bylaw would be deliberated.

He stated that there was still some overlapping of the regional financial rules, citing as an example the management of donations from third parties as an addition to regionally-earned income (PAD).

"All donations to Central Sulawesi from third parties have so far been used by the regency and mayoralty, while the provincial administration gets nothing, yet there are 30 offices and agencies that financially depend on the province."

Helmi, who is from the Golkar Party faction, said he hoped that the bylaw would in the future stimulate provincial, regency and mayoralty administrations to seek other sources of income.

"If regional administrations are capable of exploiting financial resources positively, they will not depend on aid from the central government, locally known as Dana Alokasi Umum (DAU)."

"The deliberation of the bylaw is in anticipation of the shortage of aid from central government, the amount of which has never been adequate to pay civil servants' salaries. This year DAU for Central Sulawesi is Rp 141 billion, while the civil servants' salaries amount to Rp 100 billion," he said. "That amount does not include the 14 percent salary increase."

The provinces have been burdened by the increase in the number of civil servants since the regional autonomy law was applied nationwide in June 2001. All employees of ministry offices in the provinces have therefore become financially dependent upon the provinces. (24/sur)