According to the ministry's data, some 440 regional administrations, or equivalent to 81.2 percent of all regional authorities, have finalized their regional budget in a timely manner in 2021, declining from 504 regions, or equal to 93 percent, that had recorded timely finalization in 2020, she noted.
"This year, some 60 regional governments had failed to determine their regional budget in a timely manner," Indrawati noted in her official statement in Jakarta on Tuesday.
The minister reminded regional authorities that timely regional budget finalization are essential for the budget distribution and realisation performance next year, to which end the regional authorities must ensure that the regional budget is readied in time.
"I am optimistic that the regional governments would finalize their budget in a more timely manner this year because if the state budget has been finalized but the regional budget is incomplete, then we will lose the momentum to synchronise economic development," Indrawati noted.
Meanwhile, the minister also highlighted that several regional budgets were not complying with the requirement of minimum allocation to several budget posts, especially to the healthcare and education budget posts.
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Out of the 542 regional administrations, 466 regions had met the minimum allocation for education budget post and 64 regions had yet to comply with the minimum quota, she pointed out.
Some 517 regions have complied with the minimum requirement for the healthcare budget post, while 13 regions are non-compliant, the minister stated.
A total of 402 regions have met the requirement, while 128 regions have not complied with the requirement to allocate the central government's transfer fund, whereas 530 regions have complied, and 12 regions have not complied with the obligation to submit their finalized regional budget, she explained.
Indrawati also urged regional governments to ensure even distribution of the budget absorption plan monthly to prevent hastened budget consumption at the year-end.
Early budget consumption at the start of the year will also allow residents to avail the benefits of development sooner, the minister added.
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Translator: Agatha Olivia V, Nabil Ihsan
Editor: Rahmad Nasution
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