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National and regional development is inseparable part of village development activities, given the concentration of population is still dominant in the village; considering the concentration of the population still dominant located in the village, so that the village is the power base of the social economic and political need to get serious attention from the government. Construction of the village is realized in one of the forms of allocation of funds for the village. The allocation of funds village is funds given to the village of financial equalization funds of the central government and regions. This research was carried out in Siak Regenciy, Riau Province, Indonesia with two villages selected the village of Rawang White Water Bay and the villages of Siak District Merbau Dayun Subdistrict. This type of research was designed using the format verification and qualitative design approach of phenomenology (Burhan Bungin, 2007). The process of implementation of the program the allocation of funds for the village is divided into four main lines: The Process of Allocation Planning of Village funds, The process of the Allocation Management of Funds Village, The Process of Administering the Program ADD, The Process of Reporting Allocation Program of Funds Village. I. Introduction Decentralization (fiscal) is part of the scenario for the reinforcement of good governance. It is aligned with the governance changes in Indonesia which experienced a transformation in the last decade. The construction of the centralistic development has directed at model decentralize with giving some affairs/authority to the regions (decentralized) and providing room set to regions (autonomy). When viewed from the side the importance the central government, at least there are three main objectives of decentralization. The first is called political education (education of politics). The meaning is through decentralized, expected the public will learn to recognize and understand the different issues of social, economic and political that they face; avoid or even refused to pick the candidate members of a legislature that is devoid of any qualifications political abilities expected (Smith, 1985, Maddick, 1963: 50-106, Mardiasmo 2002b). The second objective of decentralization of the interests of the central government is to provide training in political leadership (leadership training). The third objective of decentralization of central government's interest is to create political stability (for creating political stability) (Mardiasmo, 2002b). National and regional development is inseparable part of village development activities, given the concentration of population is still dominant in the village; considering the concentration of the population still dominant located in the village, so that the village is the power base of the social economic and political need to get serious attention from the government. Construction of the village is realized in one of the forms of allocation of funds for the village. The allocation of funds village is funds given to the village of financial equalization funds of the central government and regions. Granting allocation of funds village is a form of the fulfillment of the rights of the village for the implementation of autonomy own to grow and flourish follow growth from the village itself on diversity, participation, autonomy, empowerment, democratization of society and enhance the role of the village government in providing services and improving the welfare of the community as well as the acceleration of the development and growth of the heaved the territories. Through the allocation of funds for the village, the village has had the opportunity to manage the development, governance and social development village autonomously. The ability and skill apparatus village is the basis of the implementation of government especially in the field of finance in managing allocation of funds village. Physical development is a manifestation of the development of the village, but at this time the village facilities and infrastructure is still inadequate in the achievement of sustainable development. Because of this, funding is a basic factor in improving the construction of the village. Problems in the village, if traced objectively shows still lack adequate economic welfare apparatus and society (Thubany, et al. 2006). This had an impact on aspects of the service to be hampered. Unequal income it could certainly be the cause of economic reform resources village experiencing inequality. In the last year, no less than 18 village chief, Secretary Treasurer of the village and the village that has been reviewed by Kejaksanaan and police Apparatus in connection with alleged misappropriation of funds

iosr journal of business and management

The Management of the Village Fund Allocation as an Instrument towards Economic Independence Village (Case Studies in 2 villages in Siak Regency, Province Riau)