Govt to allocate Rp 4.01t for regions

Govt to allocate Rp 4.01t for regions

The Jakarta Post, Jakarta

The Ministry of Finance announced on Friday the central
government would allocate as much as Rp 4.01 trillion (US$441.63
million) next year to help regional governments finance economic
and social programs.

The government allocated Rp 3.1 trillion in the current 2004
state budget for the same purpose.

The ministry said in a press statement the funds would be used
to help regions finance programs in the areas of education,
health, infrastructure, agriculture, fisheries and maritime
affairs, as well as providing facilities for administrative work.

It said the education sector would receive Rp 1.22 trillion,
health Rp 620 billion, infrastructure Rp 1.53 billion, fisheries
and maritime affairs Rp 322 billion and agriculture Rp 170
billion, with Rp 148 billion being allocated to provide
administrative facilities.

The central government has been providing these special
allocation funds to help finance regional programs since the
implementation of regional autonomy.

The ministry, however, said the funds should be directed
primarily to poor regions with limited fiscal ability to finance
key economic and social programs.

Provinces like Papua, Aceh and Maluku, as well as remote areas
and areas prone to landslides or floods, will be the priority, it
said.

The ministry said projects funded by the special allocation
funds must start by 2005, and certain expenses such as those for
research, training and administration must be financed by the
regions.