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This research was motivated by the dependence of Regional Government, especially North Sulawesi Provincial Government on Transfer Funds in financing their regional expenditure. This was exacerbated when the covid-19 pandemic occured where covid-19 handling and control activities became the government’s main focus. Therefore, this study conducted to analyze the process of allocating Transfer Funds on regional expenditure by the North Sulawesi Provincial Government before and during the covid-19 pandemic. This research uses a qualitative research method with a case study approach, and the results are analyzed with the analysis technique of Miles and Huberman Model. The results showed that there were differences occurred in the focus of allocating regional expenditure which during the covid-19 pandemic was directed to spending on handling and controlling covid-19, while previously, regional expenditure was allocated to priority programs according to the vision and mission of Governor. Limited fiscal space during the covid-19 pandemic has also affected the pattern of budget allocations so that the Regional Government Budget Team (TAPD) has became more selective in allocationg budget. The efforts that have been made by the North Sulawesi Provincial Government through the Regional Financial and Asset Agency (BKAD) to overcome the constraints on expenditure allocations during covid-19 pandemic are refocusing and reallocating the budget by identifying types of budgets that are not urgent to use, conducting supervision and assistance to the regional apparatus, and conducting regular evaluation of Transfer Funds and financial implementation in regional apparatus level to prepare financial reports. The results also show that the North Sulawesi Provincial Government has not established a policy on the use of General Allocation Funds (DAU) and Revenue Sharing Funds (DBH) that have not been allocated.
Tana et al. (Wed,) studied this question.