Kupang, E Nusa Tenggara (ANTARA) - The Finance Ministry has directed district and city governments in East Nusa Tenggara province to allot 2 percent of their general transfer funds for compulsory spending on controlling inflation amid the fuel price hike.
"All district/city governments in East Nusa Tenggara are expected to form compulsory spending (of) as much as 2 percent (of the general transfer funds) to deal with the impact of inflation in October, November, and December 2022," chief of the East Nusa Tenggara Provincial Office of the Directorate General of Treasury of the Finance Ministry, Catur Ariyanto Widodo, said in a written statement on Saturday.
The move is part of efforts to implement the Finance Minister's Regulation No. 134/2022, he added.
As per the regulation, regional governments are required to submit a report by September 15 on the allocation of 2 percent of the general transfer funds for handling inflation.
Similar reports will need to be submitted on the 15th of October, November, and December.
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Hopefully, the regions will not be late in submitting the reports to the Directorate of Fiscal Balance at the Finance Ministry so that the disbursement of general allocation funds is not obstructed, he said.
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"If they are late in submitting the report, the disbursement of their general allocation funds and profit sharing fund that they will actually use to finance activities during the rest of 2022 will be postponed," he added.