THE Ministry of Finance (Kemenkeu) continues to encourage regional governments (Pemda) to increase local revenue (PAD). This is to create independent regions and not rely solely on budget allocations from the center.
“One of the measures of independence is the increase in PAD. Our PAD has continued to improve. Much depends on the central government, of course, but if you ask whether there has been improvement, of course there has been improvement,” said the Director General of Fiscal Balance at the Ministry of Finance, Lucky Ali Firma, following a meeting with the DPR RI Budget Agency, Tuesday (9/7).
So far, he said, many regions have been able to increase PAD compared to previous years. However, Lucky did not mention the number of regions that might be said to be independent.
“I don’t know yet. We’ll see later at the end of the year, it will continue to develop. As for now, the numbers are not fixed because it just entered the middle of the year. I don’t remember the numbers, but this is one of the measurements, namely the PAD numbers, later just look at the numbers that have increased, they are already positive,” he explained.
According to him, the Ministry of Finance has provided support through guidance so that regions are able to increase PAD, starting from developing tax revenues, levies, and others, there are already established rules. However, the Ministry of Finance realizes that each region certainly has different potentials.
For this reason, efforts to encourage regions to increase PAD cannot be carried out with the same approach.
“If independence is related to PAD, how do we encourage PAD to be better. However, PAD also depends on external factors. If the economy improves, it improves. And regional economies are different. Some depend on mining. If, for example, we are asked regarding independence, we encourage PAD,” he emphasized. (Z-2)
#Ministry #Finance #Encourages #Regional #Governments #Increase #PAD #Independent
