Types of Central and Regional Government Expenditures

1. Central Government

The revenues collected by the central government will then be used to finance various planned programs or activities.

Types of central government expenditure:

a. central government spending,
b. shopping area.

Central government spending can be classified based on three things.

a. By type, central government spending consists of:
1. personnel expenditure:

• salaries and allowances,
• honorarium, Sivakasi, and
• social contributions;

2. goods shopping:

• shopping goods,
• shopping services,
• maintenance, and shopping
• travel shopping;

3. capital expenditures;

4. debt interest payment:

• domestic debt,
• foreign debt;

5. subsidies:

• state enterprises (financial institutions and non-financial institutions),
• private companies, and
• tax subsidies;

6. grant expenditure;

7. social assistance:

• disaster management,
• assistance 

8. other shopping;

9. additional central government spending.

b.according to its function, central government spending consists of:

1. public services;
2. defense;
3. order and security;
4. economy;
5. the environment;
6. housing and public facilities;
7. health;
8. tourism and culture;
9. religion;
10. education;
11. social protection.

c. according to the organization, central government spending consists of spending on projects or activities of a hundred ministries/government agencies. Regional shopping consists of:

1. Fund balancing

• Revenue Sharing Fund

1. Taxation (income tax, land and building tax as well as the acquisition of land and building rights).

2. Natural resources (petroleum, natural gas, general mining, forestry, and fisheries).

• General Allocation Fund
• Special Allocation Fund

1. Reforestation fund
2. No funds reforestation
3. Special autonomy funds and adjustments

• Special autonomy fund
• Adjustment fund

2. Local Government

The local government has expenditure items used to finance various development projects/activities it undertakes.

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