GDP from ), and the government . Notes: “Budget” is assumption in original Budget (APBN); .. -%20Background%tvnovellas.info Immediate actions to assist in the implementation of the budget. .. APBN.: Anggaran Pendapatan dan Belanja Negara (Central Government Budget). infrastructure-sector-dipa-tracking-study) and the July Indonesia Economic ministry's spending of central government budget (APBN), excluding.
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This Indonesian Budget in Brief was developed based on APBN (state . REVISED. BUDGET. APBN. Rp T. Rp T. Pengelolaan APBN dan Politik Anggaran di Indonesia dalam Perspektif Ekonomi Islam. Data (PDF Available) · April with Reads. Strategi untuk menjaga kesinambungan fiskal: mendorong agar APBN lebih APBNP. APBN. 11,0. 11,3. 11,9. 12,2. 12,3.
Meanwhile, governance is widely believed as one of key factors to improve development; thus fiscal decentralization is deemed to be able to improve development indirectly. The development is measured through economic, education, and health indicators. Basic descriptive statistics as well as correlation analysis on fiscal decentralization by using panel data is used to see the correlation between fiscal decentralization and the above-mentioned development indicators. The result shows fiscal decentralization is positively correlated with development in Indonesia. However, it is also found that there is no guarantee that merely higher transfer fund from central government will result higher development; what matter more seems to be the pro-development budget allocation and the spending quality. Other key success factors of fiscal decentralization for development in Indonesia could be possible future research area.
However, it is also found that there is no guarantee that merely higher transfer fund from central government will result higher development; what matter more seems to be the pro-development budget allocation and the spending quality. Other key success factors of fiscal decentralization for development in Indonesia could be possible future research area.
Keywords: fiscal decentralization, governance, development, Indonesia. Fiscal decentralization is also one dimension of public financial management PFM reform recently practiced by many developing countries, along with improvement in budget formulation, execution, accounting and reporting as well as external oversight.
Indonesia embarked on fiscal decentralization in It is one of the PFM reform agenda that Indonesia went through in period. During this period, several public finance laws were enacted, such as law on local government law number 22 year , which later was revised to law number 12 year ; law on fiscal decentralization law number 25 year , which later was revised to law number 33 year ; law on public finance law number 17 year ; law on state treasury law number 1 year ; law on national planning law number 25 year ; and law on supreme audit institution law number 15 year One of the key aspects of the fiscal decentralization law law number 33 year is the regulation on central government and local government taxation authority.
As the result of the arrangement, central government will transfer certain amount of money, called as fiscal transfer 2, to the local government. The fiscal transfer is classified into three types. The first is Dana Bagi Hasil DBH or revenue sharing grant or simply tax revenue and natural resources proceed sharing between central and local government based on certain percentage 3.
The second is Dana Alokasi Umum DAU or general allocation grant or a grant that is transferred to equalize 1 In , there was another law on government finance issued, that is law number 28 year regarding local tax and local retribution. This law gives more power to local government to impose tax and manage their revenue. The impact of fiscal decentralization towards economic development is well researched, yet still inconclusive.
Country which adopts fiscal decentralization has greater potential for improved macroeconomic governance than centralized fiscal regime government Shah, This is caused by the precautionary measures which are employed in fiscal decentralization regime.
As for Indonesia, the impact of fiscal decentralization to development is also still inconclusive 5. However, in general, it has not led to worse condition either. Simatupang found decentralization in Indonesia has brought improvement in education outcomes and responsiveness from local government regarding education service. Decentralization has also improved several health indicators; nonetheless, the availability of health services is still deficient.
Tirtosuharto found misallocation of fiscal resources and lack of investment in productive spending cause less robust growth in Indonesia. As there is still inconclusiveness regarding the impact of fiscal decentralization to development in Indonesia, this paper will also try to provide insight on this matter.
The indicator for fiscal decentralization is the amount of fiscal transfer per capita of 33 provinces in Indonesia for five years period ; while the indicators for development refer to indicators used mainly in Human Development Index HDI , such as poverty rate, Regional Gross Domestic Product RGDP , HDI, as well as high school enrolment rate of 33 Indonesian provinces for five years period to It means the fiscal decentralization has continually been developed and grown in Indonesia.
If the ministerial budget which is spent in local government activities is included, then the share of central government budget transferred to local government would be much higher.
DAU will be allocated based on fiscal space of the respected local government. Nonetheless, the trend has slightly improved less-dependent to central government in fiscal year. Furthermore, the poverty rate and mortality rate per new-born has also showed decreasing trend. Table 1 shows the result of correlation analysis. First, there is positive correlation between local government fiscal transfer and poverty rate.
In particular, more attention should be commitment to revitalizing a food program aligned with a given to the potency of local food cultures that survive in well-defined and developed sago food industry. Changing Indonesian society so it can advance food security at the the dietary behavior and mindset of the people also plays an local level.
Moreover, as part of a decentralization policy, a number of Acknowledgements new food security policies need to be analyzed and mapped This research is part of a research project sponsored by the including their movements to reflect new developments in Japanese Ministry of Education, Culture, Sports, Science, the overall food security situation.
We would like to thank the To sum up the above challenges, the Indonesian Government of Indonesia for their great assistance.
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