11
1. Local Government Expenditures BD
The definition of expenditures by the UU No. 24 of 2005 is as follows: “Expenditure is all expenditures from the account of the State Regional equity
funds reduce smoothly in the corresponding period of the fiscal year that will not be earned back by the government payment.”
Another definition of expenditure is as described in the Regulation of the Minister of Home Affairs Decree.UU No. 59 of 2007 as follows:
Expenditures are the obligation of the local government which is recognized as a deduction from net worth.
Government UU No. 24 of 2005 states that the capital expenditure is the expenditure budget for the acquisition of fixed assets and other assets that benefit
more than one accounting period. Both of these definitions make it clear that the deal will reduce the equity fund expenditures of local governments. Both the
rules, which arrange the expenditures, classify expenditures by different classifications. The difference is simply because there is anything else you want
covered by the Regulation of the Minister of Home Affairs Decree. UU No.59 of 2007. As it is defined by the Minister of Home Affairs Decree UU No. 59 in 2007
as a local financial management guideline, which includes the planning, budgeting, administration, accounting and accountability. As the required
budgetary instrument the information control is indicated, which is considered the information associated with the concept of performance-based budgeting.
According to UU No 58 article 26 of 2005 Expenditure matters concerning the implementation of priority referred to protect and improving the
12
quality of life of the community in an effort to meet local obligations are realized in the form of increased basic services, education, health, social facilities and
public facilities and develop an appropriate social security system. The classification of expenditure by business shall include: education,
health, public works, housing, spatial planning, transport, environment, land, population and civil, womens empowerment, family planning and family welfare,
social, labor, cooperative and small and medium enterprises, investment, culture, youth and sports, national unity and domestic politics, public administration,
employment, community development and rural, statistics, records and communications and informatics. The classification of expenditures by business
choices includes: agriculture, forestry, energy and mineral resources, tourism, marine and fisheries, trade, industry, and transmigration.
Expenditures in handling government affairs a particular part or midwife can be implemented jointly by the government and local governments established
by the statutory provisions set out in the form of programs and activities that classified according to obligatory and matters of choice.
In general, expenditures in the budget are grouped into five groups, namely:
a. General administration expenditure Government expenditure is all that is not directly related to the
activity or public service. General administration expenditure group consists of four types, namely:
13
1 Personnel expenditures are expenditures for the Local GovernmentPersonnel salaries, honorarium, and overtime that
is not directly related to the activities providing services to citizens.
2 Expenditures for goods are local government expenditures on goods and services not directly related to public services.
3 Expenditures for travel are expenditures on travel expenses and council employees who are not directly related to the public
service. 4 Maintenance expenditures are expenditures for the maintenance
of the Local Government of goods that are not directly related to the public service.
b. Operating Expenditures Maintenance of public infrastructure is an all expenses associated
with the Local Government or public service activities. Expenditure groups include:
1 Personnel expenditure Operation and Maintenance Expenditure Group facilities and public infrastructure are expenditures for
the Local GovernmentPersonal the effect directly to a specific activity or in other words, an expenditure that is variable.
2 Goods expenditures
Group Operations
and Maintenance Expenditures infrastructure public is local
14
government expenditure for the provision of goods and services directly related to the public service.
3 Travel expenditures
Group Operations
and Maintenance Expenditures infrastructure public are local
government expenditures for employee travel expenses directly related to the public service.
4 Maintenance expenditures
Operation and
Maintenance Expenditure Group facilities and public infrastructure are
government expenditures for the maintenance of assets from current areas that have a direct impact on the public service.
c. Capital Expenditures Government Capital Expenditures refer to government spending on
investment goods. This means spending on things that last for a certain period of time. This may include investment in hospitals, schools,
equipment furniture, IT-facilities, archive facilities and roads. Capital Expenditures are divided into:
1 Public expenditures, these are expenditures those benefits can be enjoyed directly by the general public.
2 Apparatus expenditures, namely expenditures directly benefit not enjoyed by the public, but it is felt directly by the apparatus.
15
d. Transfer expenditures Transfer Expenditures are the expenditures for the transfer of money
from the government to third parties without expecting reward or gain refunds of the money transferred. The group consists of expenditures for:
1 Installment of loans. 2 Grants.
3 Reserve funds.
e. Unexpected Expenditures Unexpected expenditures are the expenses incurred by local
governments to finance the activities of unexpected and extraordinary events. According to Nurlan 2008 states that unexpected expenditures
are expenditures for activities are unusual or not expected to recur like natural disasters and social disasters unforeseen, including the refunds of
excess revenues from previous years that have been closed. Classification of expenditures by function for alignment and
integration of financial management consists of: 1 Public Service;
2 Order and Peace; 3 The Economy;
4 The Environment; 5 Housing and Public facilities;
6 Health;
16
7 Tourism and culture; 8 Education, and
9 Social protects.
2. Original Local Government Revenues PAD
Kategori