Analysis of the Village Fund Utilization for Poverty Alleviation

Abstract

This study aims to describe and analyze the use of village funds in poverty alleviation and the factors that influence the use of village funds sourced from the State Budget for poverty alleviation. The research used the case study method. The results showed that the utilization of village fund had been implemented in accordance with the Regent Regulation No. 6 of 2019 concerning technical instructions and procedures for the distribution and determination of details of village fund given to 142 villages in 13 sub-districts, allocated equally and fairly based on the basic allocation, affirmation allocation, and formula allocation calculated by taking into account the number of villagers, the village poverty rate, the area of the village and the level of geographical difficulty. In terms of utilization of village fund through a mechanism agreed upon in the village deliberations as the highest village forum involving village government officials, the Village Consultative Body, and elements of the village community, the use, and utilization of village fund which increase every year are more prioritized in Physical Village development (95.28%) of the total village fund, compared to the use of village fund for community development and empowerment activities (4.72%) for poverty reduction, and the use of village fund has not significantly reduced poverty rates in rural areas. Factors that influence the use of village funds are (1) conflicting regulations on the use of village funds, (2) weak supervision from both government officials and the community, (3) the low commitment of village elites in utilizing village funds to reduce poverty rates in rural areas.