VILLAGE FUND MANAGEMENT IN THE PERSPECTIVE OF STATE FINANCES FOR THE PURPOSE OF RURAL COMMUNITY EMPOWERMENT

摘要

Law No. 6 of 2014 on Villages provides a legitimate basis for the position of the village as an autonomous entity within the framework of the Unitary State of the Republic of Indonesia. It has amended Government Regulation Number 72 of 2005 on Village. One of the major changes related to the autonomy of Village Financial Management which must follow the procedures as stipulated in the legislation. Law No. 6 of 2014 on Villages stipulates village financial resources which are village original revenues, allocations of State Budget, part of local tax and Regency/City retributions, allocation of village funds that are part of balance fund received by Regency/City, financial assistance from the Provincial Budgets and Regency/City Budgets, non-binding grants and donations from third parties, and other legitimate village revenues. The existence of various sources of village finance is very closely related to the financial system of the State, resulting in legal issues related to the model of financial decentralization applied to the village, the procedure of allocating revenues and expenditures, legal status and accountability of the Village Head as the recipient of revenue allocation. This research is normative law research through library research. This study was conducted by studying the conceptual approach of village financial management that requires the support of empirical data. It then combines the basic concepts with statute approaches and the implementation of budgeting activities for the use of village funds in village government. These steps are expected to answer the research problems and realize the purpose of this study.