"For accuracy of cash assistance beneficiaries, we will use the latest data of extreme poverty eradication from the Coordinating Ministry of Human Development and Culture," Director General of Fiscal Balance at the Finance Ministry Luky Alfirman stated during a meeting with Commission XI of the House of Representatives accessed here on Wednesday.
Alfirman said he would refer to the Coordinating Ministry of Human Development and Culture's data on extreme poverty eradication to gauge the target of extreme poor families and collect data on prospective beneficiaries.
His administration would allocate minimum 10 percent and maximum 25 percent from Rp70 trillion (US$4.6 billion) in the 2023 village funding that amounts to some Rp17.0 trillion (US$1.1 billion) for the cash assistance program, he affirmed.
"We allocate as much as Rp70 trillion; Rp68 billion based on the last budget year, 2022, and we have additional allocation of Rp2 trillion," he elaborated.
Moreover, the 2023 village funding was prioritized for other areas, such as 20 percent, or Rp13.6 trillion (US$900 million), for food and animal security and a maximum of three percent, or Rp2.04 trillion (US$135 million), for village government operational needs, he elaborated.
Other priorities include stunting reduction and capital for village-owned enterprises.
In 2023, the directorate general is tweaking the village fund budget policy by considering the needs of each village and integrating the use of funds through village performance evaluation.
In 2022, village fund distribution was capped at 67.9 trillion (US$4.5 billion), or a decrease of 5.5 percent yoy from the previous record of Rp71.9 trillion (US$4.8 billion) in 2021.
They also reported that the distribution of transfer funds to the regions reached Rp816.2 trillion (US$54 billion) in 2022, or an increase of 3.9 percent year on year (yoy) as compared to Rp785.7 trillion (US$52 billion) in 2021.
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Translator: M Heriyanto, Mecca Yumna
Editor: Rahmad Nasution
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