Sri Mulyani Says Transfer Allocation To Regions Is Increasing Every Year

Minister of Finance Sri Mulyani (Photo: Antara)

Minister of Finance Sri Mulyani Indrawati revealed that the budget allocation for Transfers to Regions (TKD) is increasing every year so that it becomes a challenge for the State Budget (APBN). In addition, the increase in regional budgets was followed by increased spending on ministries/agencies (K/L).

"Fiscal decentralization is shown by regional transfer funds that have experienced significant growth. Frankly, this is a challenge for the state budget because transfers to regions are getting bigger, but spending on K/L is also getting bigger," Sri Mulyani said at a Working Meeting with Committee IV DPD RI, Tuesday, June 11.

As for 2021, the allocation of the transfer budget to the regions will reach IDR 785.7 trillion. In 2022 to IDR 816.2 trillion, in 2023 it will be IDR 881.4 trillion, in 2024 it will be IDR 857.6 trillion. And by 2025, the government has prepared a budget of IDR 890.6 trillion.

In addition, K/L spending will increase in 2025, for example for the education budget in macroeconomic policies and the principals of the 2025 fiscal policy (KEM PPKF) amounting to Rp708 trillion to Rp741 trillion.

"In this case, there is a pile of overlaps between regional spending and central spending, from infrastructure to human resource affairs. The burden must be absorbed by the state budget because it is a very important source from the regions to get the transfer," he said.

Sri Mulyani conveyed that the harmonization of central policies is intended so that there is always synchronization in realizing targets and priorities in welfare and equitable distribution of the national economy.

"In economic growth, we continue to be enthusiastic about the role of the APBN and ABPBD and of course the role of the private sector and investors in creating work opportunities through investment science," he explained.