Jakarta (ANTARA News) - The central government has allocated deconcentration fund amounting to Rp18.3 trillion for transportation development sector across the country in 2007, a minister has said.
"Allocating the deconstration fund will hopefully narrow inter-region gap in infrastructure development," Coordinating Minister for Economy Boediono said in a document for the Regional Representatives Council (DPD) made available here Thursday.
According to the document, the government has also allocated a deconcentration fund of Rp4.6 trillion for irrigation sector, Rp1.99 trillion for flood management program, and Rp1.2 trillion for drinking water and wastes management projects.
The deconcentration fund is the central government`s money which is handed to the provincial administration for various development programs.
Aside from the deconcentration fund, State Budget 2007 has allotted fund amounting to Rp190 billion for border area development, Rp464 billion for strategic and growing zone development, Rp1.02 trillion for less-developed region development, and Rp847 billion for rural infrastructure and means development.
The document stated that other instrument which will be used to narrow inter-region gap is Public Allocation Fund (DAU).
Quoting a latest study on DAU impact on regional disparity, Boediono said DAU 2006 brought better impact than previous DAU.
However, he said, there is still a room to improve DAU formula that in the long run it is more capable of further narrowing inter-region development gap.
Boediono was also quoted as saying that the government provided 434 districts and towns with Special Allocation Fund (DAK) totaling Rp17 trillion which can be used to improve various infrastructures and means.
"Some Rp5 trillion of the fund will be used to make roads and irrigation as well as to set up clean water facilities," Boediono was quoted as saying.
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