Which major intergovernmental fiscal transfer from the national budget (APBN) is designed to equalize horizontal fiscal capacity across provincial and regency governments?

Answer and explanation

Correct answer: D. General Allocation Fund (Dana Alokasi Umum / DAU)

  1. Step 1: The DAU is a block grant allocated from the APBN based on the 'fiscal gap' formula between a region's fiscal needs and fiscal capacity. Step 2. It constitutes the primary revenue source for operational spending in most regional governments. Answer: General Allocation Fund (Dana Alokasi Umum / DAU). Why not the others: DAK is earmarked for specific national infrastructure priorities; DBH shares taxes and resource royalties.

Practise more State Institutions and Regional Autonomy.

Free questions with an explanation for every one, and full timed Indonesia General Knowledge mock tests.