District Budgeting for Rural Development

Sutiyo, Sutiyo and Maharjan, Keshav Lall (2017) District Budgeting for Rural Development. In: Decentralization and Rural Development in Indonesia. Springer, Singapore, pp. 55-76. ISBN 978-981-10-3207-3

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Official URL: https://doi.org/10.1007/978-981-10-3208-0_5


Budget allocation is a reliable proxy for evaluating the prioritization of government policies . While decentralization has significantly increased fiscal transfers to local governments , rural development is still not prioritized in district spending . Most of the local budget is spent on recurrent expenditures consisting mainly of salaries and operational costs . Through some interventions from the central government, spending on education and health care has increased. However, spending on agriculture and infrastructure has been relatively stagnant over the years. The implications of local budgeting on rural development can be seen from the progress of several socio-economic indicators. Indicators in the education and health sectors have improved to some extent, while agriculture and infrastructure have remained relatively stagnant after decentralization. Reforming district organization to be more efficient is a solution to decrease recurrent expenditures . In the mean time, the central government should improve its monitoring of the utilization of district budgets.

Item Type: Book Section
Uncontrolled Keywords: Local budgeting; Development expenditure; Fiscal decentralization; Rural development
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: 02 Apr 2018 03:27
Last Modified: 02 Apr 2018 03:27
URI: http://eprints.ipdn.ac.id/id/eprint/197

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