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Central development spending in the regions post-decentralisation

Author

Listed:
  • Blane Lewis
  • Jasmin Chakeri
Abstract
The central government spends just under one-half of its development budget outside Jakarta. The centre provides more than one-third of total development spending carried out in the regions. Central development spending in the regions on primary and secondary sector activities and on education and culture is especially significant. The spatial distribution of consolidated public development expenditure is very unequal. However, central spending mitigates inequality in the geographic distribution of subnational development expenditure, at least to a certain extent. Agood deal of central government spending in the regions appears to be on tasks that have been turned over to subnational governments and is therefore illegal under current decentralisation legislation. Central support of specific decentralised activities could be implemented more transparently and efficiently through the government's specific purpose grant.

Suggested Citation

  • Blane Lewis & Jasmin Chakeri, 2004. "Central development spending in the regions post-decentralisation," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 40(3), pages 379-394.
    • Handle: RePEc:taf:bindes:v:40:y:2004:i:3:p:379-394
    DOI: 10.1080/0007491042000231539
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    Cited by:

    1. Gertler, Paul J & Gonzalez-Navarro, Marco & Gracner, Tadeja & Rothenberg, Alexander, 2023. "Road Maintenance and Local Economic Development," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt38m633q0, Department of Agricultural & Resource Economics, UC Berkeley.
    2. Gertler, Paul J. & Gonzalez-Navarro, Marco & Gračner, Tadeja & Rothenberg, Alexander D., 2024. "Road maintenance and local economic development: Evidence from Indonesia’s highways," Journal of Urban Economics, Elsevier, vol. 143(C).
    3. International Monetary Fund, 2007. "Indonesia: Selected Issues," IMF Staff Country Reports 2007/273, International Monetary Fund.
    4. World Bank, 2005. "Papua Public Expenditure Analysis : Overview Report, Regional Finance and Service Delivery in Indonesia's Most Remote Region," World Bank Publications - Reports 8322, The World Bank Group.

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