IMPACT OF VILLAGE FUND ALLOCATIONS NOT ALWAYS ACCORDING TO HOPE, WHY?

The background of the enactment of the village fund allocation (VFA) is to improve the welfare and equitable development of villages through improving public services, advancing the village economy, overcoming development gaps between villages and strengthening rural communities as subjects of development, which in turn will reduce poverty (Dariwardani, 2014). VFA is a manifestation of the fulfillment of the rights of a village in the context of carrying out regional autonomy in order to realize the growth and development of the village equally.

In essence, the Village Fund Allocation (ADD) policy is a series of businesses and policies aimed at improving people's lives. This is through expanding employment, equalizing the distribution of community income, enhancing regional economic relations and through shifting economic activity from the primary sector to the secondary and tertiary sectors. In other words, the direction of economic development is to make the income of the people go up, accompanied by the best equity possible so as to increase regional economic growth (BPS, 2014)

Therefore, the village funding policy must be implemented effectively and efficiently in the context of strengthening Anugerah village's autonomy (2017), this means the success or positive impact of VFA  on how the activities / programs are made and how they are implemented, is it in accordance with the scheme and according to priorities. In its use, 30 percent of VFA is used for operational costs of village government administration and 70 percent is used for physical development and community empowerment (Nurcholis, 2011: 90). VFA  is a manifestation of the fulfillment of the rights of a village in the context of carrying out regional autonomy in order to realize the growth and development of the village equally. Therefore the village funding policy must be implemented effectively and efficiently in order to strengthen Anugerah village autonomy (2017).

The purpose of the use of village funds Implementation of village development programs and activities, including: a. construction, development and maintenance of infrastructure or facilities, and physical infrastructure for livelihoods, including food security and settlements; b. construction, development and maintenance of public health facilities and infrastructure; c construction, development and maintenance of educational, social and cultural facilities and infrastructure. d. development of community economic businesses, including the construction and maintenance of production and distribution infrastructure. e. the construction and development of renewable energy infrastructure and environmental conservation activities.

Priority in the use of village fund allocations is used to finance village activities in the fields, namely: Division of Village Government Implementation, Division of Village Development Implementation, Division of Community Development, and Division of Community Empowerment. Is the realization of ADD fully in line with expectations? Most of the empirical research found consistent results ADD can increase economic growth but not so the results of research influence ADD on the level of poverty and equity. Why is that?

First, ADD is not fully used to support activities that are not based on the “flow money program” budgeting strategy, meaning that the program or activity is not necessarily proposed according to community needs or it can be fictitious or duplicative activities. Second, ADD in each sub-district is not always used to fund priority village activities such as the construction of physical, financial, educational, health, administrative, development and community empowerment facilities so that they are unable to boost the total village. Third, not a few physical development activities / programs employ workers and / or materials from outside the village or sub-district, as a result the maximum impact on the welfare of the local village community and certainly does not achieve equitable development that will result in greater disparities between regions. Fourth, there is the misuse or abuse of ADD, including the existence of fictitious activities / programs. Fifth, ADD is in fact only until the realization of activities / programs is not much oriented to the extent of the ability to absorb labor and even job creation, as a result efforts to alleviate poverty and equity are no longer optimal. Fifth, the use of ADD for community economic empowerment is still relatively small, as a result the acceptance of the ADD has not been able to become an income generating agent. In addition, the quality of facilities and infrastructure built is still not good due to the lack of technical management skills, both in terms of planning and management. As a result, facilities and infrastructure are less able to provide outcomes.

The problem of the discrepancy between the expectations and the reality of the ADD policy needs to be anticipated immediately, so that the ADD later when raised by the government actually has a positive impact and even a sustainable outcome. It is not enough to just base on the flow money program budgeting strategy without close supervision. Try as much as possible fictitious or duplication activities / programs. Maintaining the quality of facilities and infrastructure is no less important so that the useful life is long and provides passive income for the village.