Sutiyo, Sutiyo and Maharjan, Keshav Lall (2012) Decentralized System and Budget Allocation for Rural Development in Indonesia A Case study of Purbalingga District, Central Java Province. Journal of Rural Economics special issue 2012. pp. 403-409. ISSN 13424408
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Abstract
Decentralized system is often perceived as an important strategy for effective public spending. By granting the power of budgetary decision-making to local government, public spending will more match with public preferences. This will also improve transparency, responsiveness and accountability of local government (Cheema & Rondinelli [1], Cohen & Peterson [2], Parker [7]) Although advocated by many, the results of decentralized system are often ambiguous. In case of Indonesia, recent studies indicate that a larger percentage of budgeted revenue is allocated for recurrent rather than development expenditure (Dixon & Hakim [4], Mahi [6], World Bank [15]). However, the reasons of disproportionate allocation of district revenue for recurrent expenditure remains unaddressed by the existing studies. This is because most of them analyzed Indonesian decentralization from the national perspective that do not analyze the local socio-political realities. This study aims to analyze Indonesian decentralization more locally through a case study at one selected district in two steps. Firstly, this paper examines findings of existing studies on district government spending. Secondly, it discusses the process of budget formulation in order to understand more about local socio-political realities behind the budgeting process. The rest of this paper is organized as follows: Section two presents the overview of Indonesian decentralization; Section three describes research location and methodology; Section four discusses the budget of the selected district; Section five traces the process of budget formulation; Section six draws conclusion and provide policy recommendation.
| Item Type: | Article |
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| Uncontrolled Keywords: | decentralization; rural development; local budgeting |
| Subjects: | H Social Sciences > H Social Sciences (General) |
| Divisions: | Faculty of Politics and Government > Community Economic and Rural Development |
| Depositing User: | Ph.D Sutiyo Sutiyo |
| Date Deposited: | 07 Mar 2018 05:49 |
| Last Modified: | 07 Mar 2018 05:49 |
| URI: | http://eprints.ipdn.ac.id/id/eprint/178 |
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