Hundreds of Local Government Funds settles Trillion Rupiah

Sri Mulyani Set a budget deficit much as 0.3% in 2017 11 List of Areas Affected AnggaranDana Unemployed Local Government Delays in Banking Reach Rp224 Trillion
Fund local government (local government) were deposited in banks in the hundreds of trillions of rupiah.
President Joko Widodo (Jokowi) requested that all governments immediately spend those funds in order to encourage economic growth. President revealed 30 local governments, both at the provincial, municipal and city, depositing funds in banks.
Now we want bluntly. Help is issued (from banks) that added a lot of money in circulation in the community. But still have to use the procedure. Do not remove the President ordered, immediately come out. Not like that, Jokowi said when opening the National Coordination Meeting of Regional Inflation Control Team (TPID) VII attended by governors, regents and mayors Indonesia in Jakarta yesterday.
The 10 provinces that have the largest fund settles in banking, respectively, are Jakarta (Rp13,9 trillion), West Java (Rp8,04 trillion), East Java (Rp3.9 trillion), Riau (Rp2,86 trillion ), Papua (Rp2,59 trillion), Central Java (2.46 trillion), East Kalimantan (1.57 trillion), Banten (1.52 trillion), Bali (Rp1,464 trillion), and Aceh (Rp1,446 trillion). Pak Ahok (Jakarta Governor Basuki Tjahaja Purnama) is nyimpen big. Should be removed, said Jokowi.
The former mayor of Solo said, settles funds in banks until June 2016 reached Rp214 trillion. Despite the decline than the previous month Rp246 trillion, Jokowi said the funds were still fairly large. Still over Rp200 trillion. This delay in the realization of this kind should not we constantly continue. Stop, we should spend. Without this money, where money supply existing in areas where? Moreover, areas that baseball had the power in the private sector, the private sector, will be even tougher.
Immediately remove it, said the President. Jokowi said, the central government through the Ministry of Finance has given punishment to some local governments, especially counties and cities, which keep their funds in the bank too much. The punishment was carried out by transferring the area of ​​non-cash in the form of debt securities. GubernurDKIBasuki Tjahaja Purnama optimistic uptake in 2016 Capital Budget can be a maximum of a year earlier. Moreover, all development projects have been initiated. Tahunlaluanggarannya is quite large. Absorption is also great because a lot of development activities are not checked again spending. This year all of our check one by one.
But we are convinced absorption maximum Sure, he said. West Java Governor Ahmad Heryawan said budget West Java that has not been distributed until May 2016 reached Rp8,034 trillion. According to him in the near future that budget be disbursed soon. There is no obstacle whatsoever for realizing the budget is still in the 2016 budget belonged to West Java. Yes the funds will be disbursed soon, he said.
Aher explained, there are things that make this budget West Java is not sealed soon. He gave an example, employers in West Java involved in government projects often do not want to withdraw their funds when the project is completed. But not a problem because in the West Java there is the behavior of employers who do not disburse the budget when the project is completed (per billings), he said.
Aher said, payments for projects carried out in four installments suppose, but employers will want payment is made at once. Each term is not done when the project is completed. So right when finished should hastily taken entrepreneurs (fund). But many employers are willing to pay when, udahlah later as well.
So the project is already way, use the money he (businessman), but there is money out of us belongs to him that has not been taken, he said. Therefore, he asked the businessmen involved in the project in West Java provincial government to take immediate danayangtelahmenjadihaknya. Thus, the budget absorption could be done well and have no impact on the government’s financial administration system.
Governor of Central Java (Central Java) Ganjar Pranowo said the budget funds of Central Java which is currently stored in the bank only Rp1.8 trillion. Consisting of money demand and time, said Ganjar. He claimed not to know where the President can call the Central Java Provincial save budget funds amounting Rp2,46 trillion in bank.
Ganjar added that budget funds Java stored at the bank continues to spin. That money mlaku (walking). From the revenue side, there are people to pay taxes on motor vehicles, on the expenditure side is used to pay for construction projects, he said.
trimming Budget
In another part, the budget cuts planned by the central government is believed to be only a small impact on the growth of gross domestic product (GDP). Senior Deputy Governor of Bank Indonesia (BI) Adityaswara Mirza said, the contribution of government spending to GDP is only about 10-12 percent. In other words, Mirza see government spending not a major component of GDP.
The greatest GDP that’s determined by the household consumption sector between 55 percent to 60 percent, the private sector, and export-import. Thus the most important how we increase exports, boost the private sector rose, and incomes increased again. So if that’s not linked to one (between government spending and economic growth), said Mirza.
He considered the government’s move tepatkarenarealisasipenerimaan budget cuts in recent years have always missed the target. Though investors see the credibility of the government through the state budget. The lower the budget deficit and debt to GDP ratio, the better the state budget and credible. If (the realization of) spending continues to be on target is good to shore up growth. But if the reception is not on target, what happens is the deficit. If the enlarged deficit must be closed with the debt, he said. Thus, Mirza see budget cuts as the government seeks to keep the budget deficit and the debt ratio in a healthy condition.
If unhealthy conditions will affect the stability of financial markets, which in turn would interfere with economic growth. Basri said former Finance Minister, Sri Mulyani Indrawati step cut to Rp65 trillion in spending ministries / agencies (K / L) and Rp68,8 trillion transfer to the regions is a natural thing in the economic situation that makes the condition of the state treasury derived from taxes depressed.
So this is a matter that is realistic, duitnya baseball there (to spend). Until this June if I am not mistaken, the negative tax revenue growth when compared to last year. Means tax this year is lower than last year’s tax receipts, whereas last year’s target occurs shortfall (less realization of the target).
As simple as that, he said. He said government spending was instrumental in encouraging the growth of GDP. But taxes are too aggressive in the midst of a difficult economic situation will also reduce the rate of economic growth itself. Austerity measures judged better than imposing deficit widened by adding new debt. One of the criticisms often conveyed is this government always kept the debt, he continued.
CMEA Nasution said it is conducting sweeps of the Non-Priority anggarananggaran. The government is also back carefully calculate how much potential tax revenue that could have been obtained by the government this year. Taxing somewhat excessive force is also actually a slowing economy, he said.
Minister of Planning / Head of Bappenas Bambang PS Brodjonegoro said the budget cuts will target items during shopping is often not absorbed. So we do is natural. We see a budget that is not absorbed, he said.

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