FINANCIAL STATE AND LOCAL

 ALLOCATION FUNDS
By:
Safira Annisa (1710532066)
Dinny Firvidiani (1710533026)
Eka Miftahul J (1710533001)
Nandini Pramadhani (1610500000)

Accounting Department
Faculty of Economics
Andalas Universit

 Funds For Result (DBH) of all province in Indonesia

 General Allocation Fund (DAU) and Special Allocation Fund (DAK) of Makassar
 Article Entitled “ Why is the state budget designed for deficits? “

By:

Safira Annisa (1710532066)

Accounting Department
Faculty of Economics
Andalas University
2018

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 HEALTH and KB PROGRAM
Procurement Health
Basic Referral Pharmacy Family
of Supporting Insurance Regional Subtotal
Health Health Health planning
Equipment Support Priorities Health and KB
Services Services Services (KB)
Immunization National
6.393 9.523 17.689 49.819 526 83.950

OTHER SECTOR
Drinking Sanitation Housing Market Industry Agriculture Marine and Tourism
water and Small and Fisheries
Settlements Medium
2.307 531 956 892

EDUCATION
SDLB/SMP Subtotal
SD SMP SMA SKB
LB/SMLB/ SLB Education
9.187 6.090 15.277

ROAD
Supporting Regional
Subtotal Road
Connectivity Priorities
69.775 69.775

TOTAL
SPECIFIC
GRANT (DAK)
REGULAR

173.688

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 TYPES OF PHYSICAL ASSIGNMENTS
ACCORDING TO MAKASSAR CITY 2018

HEALTH
Referral Hospital Blood Transfusion Unit Schistosomiasis BAPELKES Subtotal Health
10.259 10.259

ROAD IRRIGATION
Supporting Regional Priorities Subtotal Supporting Food Regional Subtotal
Connectivity Road Sovereignty Priorities Irrigation

OTHER SECTOR
Small and
Vocational Dringking Medium
Sanitation Market
Education water Scale Energy
4.234 7.538

ENVIRONMENTAL & FORESTRY

living Forestry Subtotal
environment LHK

TOTAL SPECIFIC
GRANT (DAK)
ASSIGNMENT
22.030

TYPES OF PHYSICAL DAK OF AFFIRMATION ACCORDING TO

MAKASSAR CITY 2018
DAK AFFIRMATION
SECTOR
Health Housing Education
and
Loc Gov Primary Procurement of Subtotal Settlements SD SMP SMA Subtotal Drinking TOTAL DAK
Clinic Hospital Supporting Health Transportation Sanitation
Education Water AFFIRMATION
Equipment
Immunization

CONCLUSIONS OF DAK:

If we look to the table the allocation is appropriate to Makassar. Because Makassar not need
the affrirmation fund and also for forestry because it has less the resources of forestry. We can
conclude the DAK priority of this city is for health program because it takes the biggest amount of
allocation fund. Eventhough its right decision, but i think the allocation for education quiet small for
this city and also according to the issue the makassar government also need the additional fund in
education. So, we hope the allocation dak for education in makasaar can increase in the next year.

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 Why Is The State Budget Designed For Deficits?
In the preparation of the APBN it is usually held on two choices, between policy deficits
or surpluses. Deficit policy is an option when macroeconomic objectives are intended to create
high economic growth, so the government makes more expenditure (expansive). But
conversely if the purpose of the budget is to control the rate of economic growth, the
government will reduce its expenditure (contraction).

For Indonesia, based on the history of its APBN policy, deficit policy is always the first
choice. Economic knowledge and practice recognize alternatives. That is, expenditures do not
need to shrink, but the shrinking revenues this year can be closed with greater revenues from
the coming years. That is, some of the revenue from this year is debt that must be covered by
future years. The term is budget deficit. In other words, the budget deficit occurs when
government expenditure exceeds its revenue, and if the opposite is a surplus, that is if the
revenue is greater than the expenditure.

So the reason why the state expenditures increased is due to the high level of economic
development, so that expenditure increases rapidly, while the growth rate of revenue is not like
expectation. But, there are several things that must be done in connection with achieving the
deficit target, namely: reducing subsidies and tightening routine policies and development. The
reduction in subsidies is an urgent need, because it is the biggest passenger for the unhealthy
state budget so far.

There are several things that become factors to support a country's economic growth, namely:
1. Investment
Investment is a key word in terms of production, while production is a major factor in economic
growth. South Korea is one of the poorest countries that achieved economic growth on average
more than six percent in the period 1960-2005, with an average investment contribution to
GDP of 30 percent in that period. So investment is important.

2. Innovation
Innovation is also a factor supporting economic growth. With the presence of incentives in
terms of innovations, such as copyright, can encourage the productivity of a country, besides
that

3. Institutional (government) policies and political stability.

Suggestion :
The budget deficit must be directed at the utilization mechanism, namely the type of
use and institutions that guarantee the effectiveness of its use. The use of a budget deficit for
financing consumption will endanger the economy in the long run. But if financing the budget
deficit is used to expand production capacity and strengthen the budget will not burden future
generations.
So, the government must carry out contractionary policies by increasing expenditures
aimed at boosting the production side so as to increase economic growth, which in the end is
for the welfare of the people.

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