Bylaw on financial sharing needed

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)