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In 2020, Villages That Perform Well are Eligible to Receive More Funds

Semarang, 18/02/2020 MoF - The Government through the Ministry of Finance added the performance allocation formula (AK) in the Village Fund distribution scheme in 2020. The allocation is for villages with good performance of 10% of the total villages or 7,495 villages. This was conveyed by the Director General of Fiscal Balance (Dirjen PK) of the Ministry of Finance, Astera Primamanto Bhakti at a working meeting (Raker) for the Acceleration and Distribution of Village Fund Management in Central Java Province in 2020 at Holy Stadium Semarang, (18/02).

According to the Director General, the amount of performance allocation is set at 1.5% of the overall Village Fund budget, which reached Rp72 trillion in 2020. One of the aims is to encourage the performance of Village Fund management.

"If there are regions or villages that have good performance, then they will get a better allocation than those that have poor performance. And that portion is if from the formulation, they can get around 1.5%. If it compared to previous year was none," he explained.

On the occasion, the Director General also stated that the distribution of Village Funds is now greater in the first phase, which is 40% from the previous 20%. The second phase is 40% and the third phase is 20%. For villages that are performing well, the government is rewarding the distribution of funds with a proportion of 60% in phase I and 40% in phase II. According to him, on one side it is accelerating, but on the other hand the village head is required to have good and firm planning.

"For regions that have good performance, the reporting is good, it can also be accelerated. Not (4-4-2 disbursement formations), but 60% and 40%," said Director General of PK.

In front of thousands of participants who were predominantly village heads in Central Java, the Director General advised that the Village Fund governance should be continuously improved. According to him, the simplification of the Village Fund distribution requirements did not reduce the responsibilities of village heads. He also appealed that village assistant officers continue to be improved in terms of the number and quality of its human resources.

"So, please pay attention to good governance. We at the Central Government are trying to create a simple system that is easy to understand, but that does not mean there are no records," concluded the Director General.

As additional information, the Government allocated Village Funds of Rp8.2 trillion to 7,809 villages in Central Java in 2020. Village Funds realization or its usage in Central Java was classified as very good in 2018 and 2019, which is above 99%. (fir/hpy/nr)