Optimizing budget policy in village fund allocation (ADD): a governance and public administration perspective on rural development

The Village Fund Allocation (Alokasi Dana Desa-ADD) is a key fiscal decentralization instrument designed to enhance village autonomy and sustainable rural development in Indonesia. This study examines the effectiveness of ADD management from a public administration perspective, focusing on transparency, accountability, and community participation. Using a qualitative approach, data were collected through observations, interviews, and document analysis in Pallis Village, West Sulawesi Province. The findings indicate that digital financial management systems, participatory budgeting, and strengthened oversight mechanisms have improved ADD governance, enhancing financial efficiency and public trust. However, challenges persist, including limited financial literacy among village officials, inadequate digital infrastructure, and low public awareness of ADD management. The study highlights the need for capacity-building programs, expanded digital governance, and enhanced community participation to optimize ADD utilization. Furthermore, data-driven decision-making and multi-sectoral collaboration are essential to ensuring equitable resource distribution, improving infrastructure development, and strengthening economic resilience. By implementing these strategies, ADD can serve as a model for decentralized governance, promoting inclusive and sustainable rural development.