Fiscal Decentralization It Is Hoped That It Will Further Encourage Local Governments In Budget Independence

Illustration (Photo: Doc. Antara)

JAKARTA - Deputy Minister of Finance (Wamenkeu) Suahasil Nazara said that the decisive decentralization step that is currently being taken has four major goals or grand design.

Pertama, decentralisasi fiskal harus memperkuat local taxing power. Pemerintah daerah diharapkan semakin dekat dan responsif dengan constituen yang memperkenankan pemerintah daerah.Region harus punya connecting yang kuat dengan constituennya. Local taxing power adalah memperkuat itu. Karena itu, local taxing power tidak akan bisa meningkat power itu hanya dengan diberikan pajak baru, ditingkatkan tarayanya, tapi lebih dari itu harus local taxing power itu, ujar dia dalam keterangan tertulis dikutip Minggu, 25 Desember.

Second, fiscal decentralization is to develop central and regional financial relationships that minimize vertical and horizontal inequality. The Deputy Minister of Finance translates the inequality is the ability of each region to provide the same minimum service. Any Indonesian citizen, born anywhere, can enjoy, get the same minimum government services. Any service? Educational services, health, government, services on the environment, regarding housing, sanitation, and others that are mandated," he said.

Sri Mulyani's deputy said horizontal inequality was not only interpreted as inequality regarding the allocation of the General Allocation Fund (DAU), but also had to be seen by the minimum service standard outcome.

According to the Deputy Minister of Finance, vertical inequality is an inequality between the central government and local governments. Both have the same responsibility in their respective fields. This is our job if we want to bring fiscal decentralization closer to economic decentralization, fiscal inequality, horizontal inequality and vertical inequality that we should handle through our fiscal decentralization," he said.

The third is to develop the flexibility of regional spending that is responsible for achieving minimum service standards. This sees that the arrangement of spending is correct, including the chart of the standard account is correct. Without us having a standard account chart, there has never been a balance sheet consolidation. The point is that regional spending is getting more and more correct," he asserted. Meanwhile, the purpose of the fourth fiscal decentralization grand design is harmonization of central and regional spending for optimal public service implementation. If this fourth one is not done, then the local taxiring power goes up, the standard cost is correct, the standard account chart is the same, but still not harmonious. It should be harmonious in the context of the division of authority and in the context of business cycles. It is not easy to translate. The harmony with the area should be thought of," concluded the Deputy Minister of Finance, Suahasil Nazara.