Transfer uganda

DISKUSI/DIALOG MENGENAI APBN LEBIH DALAM
POLICY DIRECTION OF
INTERGOVERNMENTAL FISCAL TRANSFER IN INDONESIA
MINISTRY OF FINANCE
DIRECTORAT GENERAL OF FISCAL BALANCE
Jakarta, 7 July 2010
1
Prepared & Presented by Pramudjo-Director of Balance Fund-MoF-081513374488

Discussion Focus
Concept of Fiscal
Decentralization
1
Utililization of Fund
9
Legal Basis
2
Fund Channeling
8
Problem
3
Disbursement Method
Profile Map of Regions
7
4
Transfer to Region
Alternative Solutions
6
5
2

TheConcept of
Republic Of
Fiscal Decentralization
Indonesia
Devided into 33 provinces
Delegation of
Authority/Power
1
Funding
Autonomy
Support
Transfer Fund
Delegation
3
Delegation of
Functions
Devided into 491 regions
Fiscal
2
Decentralization
Money
Follows
Functions
3

Indonesia Archipelago
Country with :
thousands of islands (more than 17.000 islands)
33 provinces, 398 regions, and 93 cities ( 524 local governments)
5.271 km length, 2.210 km width , land area 1.919.440 km2
massive population :
more than 240.000.000 people (Estimate Census 2010)
231.369.499 people (Data for General Allocation Grant Formula 2010)
Papua
Sumatera
Kalimantan
Jakarta
Sulawesi
Java
Bali
4

Legal Basis
Ministrial of Finance Decree No. 21 Year 2009 regarding Implementation and Accountability of Transfering Fund to Region
5

Big Problems
Imbalances among Regions due to differences of
Vertical Fiscal Imbalance
Characteristics and Conditions
Horizontal
Fiscal
Imbalance
Natural Resources
Population
Areas
Financial Needs & Capacity
6

CENTRAL GOVERNMENT
Vertical Fiscal
Imbalance
LOCAL GOV
LOCAL GOV
Horizontal Fiscal
Imbalance
7

Essence of Autonomy
PROVIDINGSERVANT & MANAGER
SERVING PEOPLE
MANAGING & DEVELOPING AREAS
8

Indicators To Serve The People
SERVING PEOPLE
NUMBER OF PEOPLE
PUPOLATION
HUMAN DEVELOPMENT INDEX
CONDITION OF PEOPLE
General Allocation Grant
GROSS DOMESTIC REGIONAL PRODUCT
ECONOMY ACTIVITIES
Revenue Sharing On Taxes
9

Indicators To Manage The Area/Territory
GROSS DOMESTIC REGIONAL PRODUCT
Construction Expensiveness Index
WIDE OF AREA
Revenue Sharing On Taxes
Specific Allocation Grant
10

SERVANT& MANAGER
Indicators To Provide Public Servant
SALARY OF LOCAL GOVERNMENT OFFICERS
POPULATION OF LOCAL GOVERNMENT OFFICERS
11

To Minimize Problems
Horizontal Fiscal Imbalance
Horizontal Fiscal Imbalance
Equalizing public service provision gap among regions
Vertical Fiscal Imbalance
Reducing fiscal imbalance among regions
Minimizing gapbetween central and local government
12

Transferring Fund
To Regions
Region
Local
Government
Central
Government
13

Scope of Transfer to Region 2010
DBH Tax
Revenue Sharing (DBH)
DBH Property Tax
General Allocation Grant (DAU)
DBH Fee Acquisition
Balance Fund
Specific Allocation Fund (DAK)
DBH Income Tax
DBH Excise
Spec Auto For PAPUA
Transfer
DBH Natural Resource
Spec.Auto
Fund
Spec Auto PAPUA BARAT
To Region
DBH Forestry
Spec Auto ACEH
DBH General Mining
Additional Spec Auto Fund
For Infrastructure in PAPUA
DBH Fishery
Special Autonomous
& Adjustment Fund
Additional Spec Auto Fund
For Infras in PAPUA BARAT
DBH Oil&Gas
DBH Geothermal
Grant For Enhancing
Income of Teachers
Adjustment
Fund
Fund For Local Performance
Incentive
14

Portion of Transfer in Budget Year 2010
Central Gov Spending For Line Ministries Rp418,0 T (39,9%)
3,33%
Line Ministries Spending in Regions Rp154,7 T (14,07%)
11,93%
39,90%
Transfer To Regions Rp322,40 T (30,77%)
Subsidies Rp158 T (11,93%)
30,77%
Grant For Societies Rp34,8 T (3,33%)
14,07%
Total National Budget goes to regions 60,1%
15

Triliun Rp
400
322,4
309,3
300
292,4
253,3
226,2
200
150,8
129,7
100
0
2010
APBN
2009 APBNP
2004
2005
2006
2007
2008
Trend of Transfer Year 2004 - 2010
Special Autonomous Fund
334,3
General Allocation Grants
Revenue Sharing
2010
RAPBN-P
16

Trilogy of Balance Fund
Trilogy: Type of group consisting of three related units to develop one theme
When Revenue Sharing increase  General & Specific Allocation may decrease
The theme is to minimize fiscal imbalance between regions or to maximize fiscal equalization
This policy is accommodated in the formula & criteria of grants
Revenue Sharing

Revenue Sharing of Taxation
Notes:
There will be no revenue sharing from Fee Acquisition on Land and Building in 2011, because it will become Local Tax based on Law #29 year 2009
The Law also regulate Property Tax managed by regions started year 2013
18

Revenue Sharing of Natural Resources on Forestry & General Mining
19

Revenue Sharing of Natural Resources on Fisher y, Oil/Gas & Geothermal
CONTINUED
The portions of Gas  30,0% (6% - 12% - 12%) + 0,5% (0,1% - 0,2% - 0,2%) or (0,17% - 0,33%)
*) Equally Shared ; **) Equally Shared To All Region ; ***) Directed Utilizing For Basic Education
NOTES :
20

Revenue Sharing of Oil & Gas – Additional Portion of 0,5%
15,0%
30,0%
15,5%
Province
3%
6%
Region
Region (Producer)
6%
12%
30,5%
other regions within Prov
6%
12%
Utilizing additional portion for funding program/activity of basic education in regions
Province
0,1%
0,5%
Region (Producer)
0,2%
other regions within Prov
0,2%
21

Scheme of DAU Components
GENERAL ALOCATION GRANT
FISCAL NEEDS
DAU
Population Index
Wide Area Index
FISCAL GAP
FISCAL GAP
Construction Expensiveness Index
Local Own Revenue
Basic Allocation
Human Development Index
Fiscal Capacities
Civil Servant Salary
Rev Sharing on Taxes
GDRP per Capita
Rev Sharing on Natural R
22

Item, Period, and Provider of Data Base
Basic
Alocation
Civil Servant Salary
T- ½
Region & MOF
Civil Servant Formation
T-½
MENPAN / BKN
National Statistic Board
Population
T-1
Mainland & Ocean Area
Ministry of Home Affair
T-1
Fiscal
Needs
IKK
T-1
IPM
T-2
GDRP PER CAPITA
T-2
TBR
T-2
Region & MOF
Fiscal
Capacities
OSR
T-2
Region & MOF
DBH Tax
T-2
MOF
DBH Natural Resource
T-2
MOF
23

The Specific Allocation Grant (DAK) Calculation Criteria
Indicated by number of damage local infrastructure
Indicated by condition and characteristics of regions
Specific Criteria
Technical Criteria
General Criteria
Specific Allocation Grant Criteria
Indicated by local fiscal capacity
24

The Concept of Specific Allocation Grant (DAK)
Characteristic of Regions: Specific Autonomy Region under developed Region potentially damaged by disaster etc
National Average of Local Fiscal Capacity
Infrastructure condition (damage, etc)
R1
R2
R3
R4
R5
Local Fiscal Capacity (LFC)
Notes:
Regions R2, R4, and R5 will potentially receive Specific Allocation Grant (because their LFC are under the national average of LFC (General Criteria)
Regions R1 and R3 may receive the allocation when they have certain characteristic (Special Criteria)
When Region R1 and R3 have no characteristics, they still may receive allocation if there are massive number of local infrastructures in very bad condition (damage) (Technical Criteria)
All data and calculation of allocation every region are discussed by Gov (MoF) and Parliament
25

Special Allocation Grants Sectors 2010
26

Special Autonomy Fund
Equal to 2% of National General Allocation Grant (DAU) Ceiling, allocated to Prov Aceh, and Prov Papua + Prov Papua Barat .
Additional Infrastructure Fund in context of Special Autonomy for Prov Papua + Prov Papua Barat .
Transferred to regions in 4 phase (15%, 30%, 40%, and 15%) with MoHA recommendation
27

Fund for Local Performance Incentive (FLPI)
Local Fiscal Management Criteria
Local Own Revenue (LOR) increase above the national average of LOR increase
Increasing level of Auditor Opinion on Local Fiscal Report (Qualified or Unqualified)
Increasing on Human Development Index (HDI) above the national average of HDI increase
Local regulation of Local Budget have been finalized on time (not more than end of December before budget year
Local Economy and Welfare Performance Criteria
Local Economic Growth Index (LEGI) increase above the national average of LEGI increase
Local Inflation (LI) decrease more than the national average of LI decrease
Poverty Index (PI) decrease more than the national average of PI decrease
Unemployment Index (UI) decrease more than the national average of UI decrease
FLPI is given to local government (province, region, and city) with very good performance in increasing local fiscal management, local economic growth, and decreasing in local inflation, poverty, and unemployment
In 2009 there are 9 of 33 provinces and 45 of 491 regions/cites receive FLPI which will be transferred within 2010
The Objective of this fund is to push forward local government consistently increase quality of local fiscal management, and support effort to serve people better
28

Fund For Enhancing Teacher Income
Teacher with Profession Certificate
Providing additional teacher salary based on the qualification of profession.
Certificate of Profession Qualification is issued by Government
The amount of additional salary is equal to the amount of main salary
Allocation to region based on population of teacher with certificate
GRANT
Teacher with no Profession Certificate
Providing additional teacher salary with no qualification of profession certificate
There is certain amount of additional salary received by teacher per month
This additional fund will be stopped when teacher s reach condition to receive certificate of profession
Allocation to region based on population of teacher with no certificate.
29

Fund Channeling of Transfer to Region
Direct transfer from National Bank Account to Regions Bank Account.
Support utilization of local treasury single account
Region
Local
Government
Central
Government
Support to finalize local regulation of local budget
No letter of application needed, but reports of local account disbursement  support local disbursement and reporting sent to Central Gov (MoF)
30

RSh Property Tax & RSh Acquisition of Land & Building Transfer
16,2% directly distributed to Province Account weekly every Friday) by the receiver bank
64,8% directly distributed to Province Account weekly every Friday) by receiver bank
9% for cost of levy
10% redistributed
6,5% equally to regions & cities (not province)
3,5% as incentive fund to regions and cities with over target realization
Cash Realization of Property Tax in Treasury Account
Cash Realization of Acquisition of L & B in Treasury Account
16% directly distributed to Province Account weekly every Wednesday) by receiver bank
64% directly distributed to Province Account weekly every Wednesday) by receiver bank
20% redistributed equally to regions & cities (not province)
31

RSh Property Tax of Central Portion redistributed equally to region
Definitive Allocation minus Stage 1 and 2
Stage 3
50%
25%
Stage 1
Stage 2
From estimated allocation on Agustus
From estimated allocation on April
November
Definitive Allocation minus Stage 1 and 2
25%
25%
Stage 3
Stage 2
Stage 1
RSh Acquisition of Land and Building ofCentral Portion redistributed equally to region
32

Transfer Mechanism of DBH Income Tax
1
20%
Quarter I
2
Tentative Allocation
3
4
20%
Quarter II
5
6
7
20%
Quarter III
8
9
10
Definitive Allocation minus transfer of quarter I, II, dan III
11
Quarter IV
12
33

20%
Transfer Mechanism of DBH Excise
Stage 1
30%
Stage 2
30%
Stage 3
from Tentative Allocation
Stage 4
Remaining between definitive allocation with transfer quarter I, II, III.
34

Transfer Mechanism of Natural Resources
1
20%
Quarter I
2
Estimated Allocation
3
4
20%
Quarter II
5
Estimated Allocation
6
7
Realization of Non Tax – Natural Resources Revenue Revenue (x) RSh portion (minus) transfer of quarter I and quarter II
Quarter III
8
9
10
Realization of Non Tax – Natural Resources Revenue Revenue (x) RSh portion (minus) transfer of quarter I, quarter II and quarter III
11
Quarter IV
12
35

Mechanism of General Allocation Grant (DAU) Transfer
1/12 every month
The first transfer is in early January
The second transfer is in the end of January
The third transfer etc are transfered every end of months (February to November)
January
February
To December
36

Mechanism of Specific Grant (DAK) Transfer
30%
Stage 1
Regions should submit Local Regulation of Local Budget(current year) and report of DAK realization previous year (the first DAK Stage 1 are transferred in February)
45%
Stage 2
DAK absorption report of shown Stage 1 up to 90% and letter of expense statement, plus statement of allocating counter part fund 10% of DAK
25%
DAK absorption report of shown Stage 2 up to 90% and letter of expense statement (the last DAK
Stage 3
37

Utilization of Transfer to Region Fund
RSh onTaxes except DBH Excise,
RSh on Natural Resources except Reforestation, and
General Allocation Grant (DAU)
Utilized for funding activities in line with needs and local priorities
BLOCK
GRANT
RSh Excise 0n Tobacco Products,
RSh Reforestation, and
Specific Allocation Grant (DAK)
Utilized for funding activities in line with certain programs/activities/sectors/fields
Specific
GRANT
38

Thanks a lot
Please visit our website :
Address:Gd. D Floor 16th Jl. DR. Wahidin No. 1 Jakarta Pusat 10710Telp. 021-350 9442 Fax: 021-350 9443Website: www.djpk.depkeu.go.idE-mail: info@djpk.depkeu.go.id
39

http://pramudjapk.blogspot.com	538
http://kangipultea.blogspot.com	5
http://www.pramudjapk.blogspot.com	2
http://webcache.googleusercontent.com	2
http://pramudjapk.blogspot.com.au	1

Transfer uganda

by abeyraffley on Aug 10, 2010

Accessibility

Categories

Upload Details

Usage Rights

5 Embeds 548

Statistics

Transfer uganda — Presentation Transcript