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Improving Village Fiscal Productivity and Capacity to Accelerate Village Development
The Village Law provides two fundamental institutional arrangement to support village development: (i) the autonomy to manage their own development; and (ii) a significant allocation of financial resources (Village Fund) from the national budget (Anggaran Pendapatan dan Belanja Negara: APBN). It aims to reduce poverty and improve villagers’ welfare and their quality of life against the Human Development Index. In its first five years, village income has increased approximately four-fold-from around Rp 99 trillion before the law (2010–14) to Rp 454 trillion (2015–19) after implementation. Some tangible outputs are delivered, such as increasing the number and volume of basic services infrastructure, improving the score and status of IDM and IPD,1 and the employment of a total of 13,459,955 local workers (2018–20) under village cash for works (Padat Karya Tunai Desa) programs
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