REPUBLIKA.CO.ID, JAKARTA -- The evaluation of the Budget for Regional Income and Expenditure (APBD) is not merely to check the amount absorbed but also concerns its impacts on regional economic growth, according to Vice President Jusuf Kalla.
Kalla made the remark while opening the National Working Meeting of the Regional Financial Year 2015 here on Thursday.
"In the evaluation of the APBD, we do not simply talk about its absorption but about its impacts on regional economic growth, as well," he said.
He pointed out that the funds disbursed by the central government for regions in the country should be spent on infrastructural and economic development.
"For instance, the money given to contractors should be used to buy cement and sand and to pay employees, as well as to buy rice and sugar to add to the economy. If the money is distributed late, all processes will be disrupted, which can lead to unemployment. This is the difference between fast and slow absorption," the vice president explained.
Therefore, Kalla has urged regional governments and legislators to complete the evaluation on time and take into serious account the percentage of economic turnaround in each region.
Furthermore, according to data from the Home Affairs Ministry, the absorption of regional budget in the first semester reached 25.9 percent.
In addition, Home Affairs Minister Tjahjo Kumolo expressed hope that in the second semester, it will reach more than 50 percent.
"We report from data we collected that till June 30, the disbursement of regional development funds reached 25.92 percent. We expect it to be more than 50 percent in the second semester," Kumolo remarked.
According to the minister, the report on the evaluation of the regional budget in the first semester will be discussed during the plenary meeting of the cabinet at the State Palace on Thursday.