Softcopy (PDF)

Policy Brief: Promoting Effectiveness of Village Development Through Performance Allocation

The enactment of the Village Law No. 4/2014 (UU Desa) has led to a number of significant changes, especially in terms of central budgeting support for village development. The law regulates the sources of village revenues that can have implications for the special budget allocations to villages sourced from both the national budget (Anggaran Pendapatan dan Belanja Negara: APBN) and regional budget (Anggaran Pendapatan dan Belanja Daerah: APBD). The central transfer fund or Village Fund (Dana Desa) is the source of revenue from the APBN that can be used to finance government administration, development, community guidance, and community empowerment at the Key Messages • Village Fund allocations are currently based on a formula containing four components. • The Performance Allocation (Alokasi Kinerja: AK) component provides incentives to well-performing villages to advance village economies and address disparity between village communities. • The current issue on village funds formulation is it is ineffective in several ways such as the Affirmative Allocation (Alokasi Afirmasi: AA) that has the potential to be a disincentive for the village to thrive–from both the management and financial aspect. For instance, only 30 percent or around 22,500 villages were able to generate village-sourced revenue (Pendapatan Asli Desa: PADesa), even though the regional tax and revenue sharing and PADes generally increased more than other revenues. • To resolve this issue, TNP2K support Directorate General of Fiscal balance, Ministry of Finance (Direktorat Jenderal Perimbangan Keuangan-Kementerian Keuangan: DJPK-MOF) to develop the Performance Allocation (Alokasi Kinerja: AK), aiming to improve the accountability and performance of the Village Fund through performance-based dispensing and incentivizing delivery performance. • The main recommendation(s) in this policy brief are performance indicator update, simplifying outcome indicators, applying equal weights between dimensions and indicators, applying proportional AK value, Increase the proportion of the AK as part of total allocation scheme and Integration of annual village potential data collection with village financial statistics. village level. Village Fund allocations have increased quite significantly over the 2015-19 period since implementation of the Village Law–with the disbursement of funds totaling Rp 257.2 trillion.

Ketersediaan

Informasi Detail

Judul Seri

Policy Brief

No. Panggil

352.54 ADJ.P

Penerbit

Jakarta : TNP2K., 2019

Deskripsi Fisik

PDF, 12 Halaman

Bahasa

English

ISBN/ISSN

-

Klasifikasi

352.54

Tipe Isi

Digital

Tipe Media

Digital Media

Tipe Pembawa

-

Edisi

1

Subjek

Administrasi Pembangunan Desa

Info Detail Spesifik

-

Pernyataan Tanggungjawab

Adji Ardi

Versi lain/terkait

Lampiran Berkas

Komentar