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- World Bank Indicators
- Total General Allocation Grant/DAU (in IDR)
Total General Allocation Grant/DAU (in IDR)
The General Allocation Grant (DAU) is a fund sourced from the Central Budget (APBN) allocated to bring equality in the financial capacity among the regions to finance the need of the regions in implementation of decentralization. It is a discretionary block grant designed to equalize the fiscal capacities of sub-national governments. DAU is allocated based on a national formula and is the sum of a basic allocation (which is a portion of the sub-national budget spending on public servant salaries) and the “fiscal gap” of the sub-national government. The “fiscal gap” is the difference between the estimated fiscal needs and fiscal capacity of each region. Fiscal needs are based on regional variables such as population, area, GDP per capita, and human development index. Fiscal capacity is measured by a region’s own-source revenue and a fraction of total revenue-sharing.