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General Purpose Central-provincial-local Transfers (DAU) in Indonesia : From Gap Filling to Ensuring Fair Access to Essential Public Services for All

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dc.contributor.authorQibthiyyah, Riatu
dc.contributor.authorShah, Anwar
dc.contributor.authorDita, Astrid
dc.date.accessioned2012-06-29T21:46:14Z
dc.date.available2012-06-29T21:46:14Z
dc.date.issued2012-06
dc.description.abstractIndonesia has come a long way from centralized governance to decentralized local governance, and today Indonesia ranks among the most decentralized developing countries. The Government of Indonesia is revisiting all aspects of local governance to make appropriate legal and institutional adjustments based on lessons leaarned during the past decade. An important area of this re-examination and possible reform is the central financing of subnational expenditures. The system of intergovernmental finance represents one of the most complex systems ever implemented by any government in the world. The system is primarily focused on a gap-filling approach to provincial-local finance in an objective manner to ensure revenue adequacy and local autonomy but without accountability to local residents for service delivery performance. This paper takes a closer look at Dana Alokasi Umum -- the most dominant program of unconditional central transfers to finance provincial-local government expenditures in Indonesia. The paper also presents illustrative simulations of alternative programs and compares these with the existing Dana Alokasi Umum allocations. The paper concludes that super complexity leads to lack of transparency, inequity, and uncertainty in allocation. Simpler alternatives are available that have the potential to address autonomy and equity objectives while also enhancing efficiency and citizen-based accountability. Such alternatives would represent a move away from the complex gap-filling approach to simple output-based transfers to finance operating expenditures. Capital grants would deal with infrastructure deficiencies. And the alternatives would institute fiscal capacity equalization as a residual program with an explicit standard to ensure that all local jurisdictions have adequate means to deliver reasonably comparable levels of public services at reasonably comparable levels of tax burdens across the country.en
dc.identifierhttp://documents.worldbank.org/curated/en/2012/06/16338364/general-purpose-central-provincial-local-transfers-dau-indonesia-gap-filling-ensuring-fair-access-essential-public-services-all
dc.identifier.doi10.1596/1813-9450-6075
dc.identifier.urihttps://hdl.handle.net/10986/9346
dc.languageEnglish
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper; No. 6075
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectACCOUNTABILITY STRUCTURE
dc.subjectACCOUNTING
dc.subjectADB
dc.subjectALLOCATION OF RESOURCES
dc.subjectALLOCATION OF TRANSFERS
dc.subjectBANK POLICY
dc.subjectCAPITAL GRANT
dc.subjectCAPITAL GRANTS
dc.subjectCAPITAL MARKET
dc.subjectCENTRAL GOVERNMENT
dc.subjectCENTRAL REVENUES
dc.subjectCENTRAL TRANSFERS
dc.subjectCITIES
dc.subjectCITIZENS
dc.subjectCIVIL SERVICE
dc.subjectCOEFFICIENT OF VARIATION
dc.subjectCOMPARATIVE PERSPECTIVES
dc.subjectCONSENSUS
dc.subjectCONSTITUTION
dc.subjectCONSTITUTIONAL COURT
dc.subjectDECENTRALIZATION
dc.subjectDECISION-MAKING
dc.subjectDEMOCRATIC LOCAL GOVERNANCE
dc.subjectDEVELOPING COUNTRIES
dc.subjectDEVELOPING COUNTRY
dc.subjectDEVELOPMENT BANK
dc.subjectDEVELOPMENT EXPENDITURES
dc.subjectDIFFERENTIALS
dc.subjectDISTRICT
dc.subjectDISTRICT GOVERNMENT
dc.subjectDISTRICTS
dc.subjectECONOMIC GROWTH
dc.subjectEMPLOYMENT
dc.subjectENVIRONMENTAL TAXES
dc.subjectEQUALIZATION
dc.subjectEQUITY OBJECTIVES
dc.subjectEXPENDITURE NEED
dc.subjectEXPENDITURE NEEDS
dc.subjectFEDERAL GOVERNMENT
dc.subjectFEDERALISM
dc.subjectFINANCES
dc.subjectFISCAL CAPACITIES
dc.subjectFISCAL CAPACITY
dc.subjectFISCAL DECENTRALIZATION
dc.subjectFISCAL EQUALIZATION
dc.subjectFISCAL EQUITY
dc.subjectFISCAL FEDERALISM
dc.subjectFISCAL GAP
dc.subjectFISCAL GAPS
dc.subjectFISCAL SURPLUS
dc.subjectFISCAL TRANSFERS
dc.subjectGAMBLING
dc.subjectGOVERNMENT AGENCIES
dc.subjectGOVERNORS
dc.subjectHOUSING
dc.subjectHUMAN DEVELOPMENT
dc.subjectINCOME TAXES
dc.subjectINFLATION
dc.subjectINSTITUTIONAL ARRANGEMENTS
dc.subjectINTERGOVERNMENTAL FINANCE
dc.subjectINTERGOVERNMENTAL FISCAL RELATIONS
dc.subjectINTERGOVERNMENTAL FISCAL TRANSFERS
dc.subjectINTERGOVERNMENTAL TRANSFER
dc.subjectINTERGOVERNMENTAL TRANSFERS
dc.subjectINTERNATIONAL BANK
dc.subjectLACK OF TRANSPARENCY
dc.subjectLARGE CITIES
dc.subjectLEVEL PLAYING FIELD
dc.subjectLOCAL AUTONOMY
dc.subjectLOCAL EXPENDITURES
dc.subjectLOCAL FINANCE
dc.subjectLOCAL GOVERNMENT
dc.subjectLOCAL GOVERNMENT ACCOUNTABILITY
dc.subjectLOCAL GOVERNMENT AUTONOMY
dc.subjectLOCAL GOVERNMENT EXPENDITURE
dc.subjectLOCAL GOVERNMENT EXPENDITURES
dc.subjectLOCAL GOVERNMENT ORGANIZATION
dc.subjectLOCAL GOVERNMENT SPENDING
dc.subjectLOCAL GOVERNMENTS
dc.subjectLOCAL PUBLIC SERVICES
dc.subjectLOCAL TAX
dc.subjectMARKET ACCESS
dc.subjectMAYORS
dc.subjectMETROPOLITAN AREAS
dc.subjectMINISTERS
dc.subjectMINISTRY OF FINANCE
dc.subjectMINISTRY OF INTERIOR
dc.subjectMUNICIPALITIES
dc.subjectNATIONAL POLICY
dc.subjectNATIONS
dc.subjectNATURAL RESOURCES
dc.subjectOPERATING EXPENDITURES
dc.subjectOWN SOURCE REVENUE
dc.subjectPERSONAL INCOME
dc.subjectPERSONAL INCOME TAXES
dc.subjectPOLICY MAKERS
dc.subjectPOOL OF FUNDS
dc.subjectPROPERTY TAXES
dc.subjectPROVINCE
dc.subjectPROVINCES
dc.subjectPROVINCIAL GOVERNMENTS
dc.subjectPUBLIC
dc.subjectPUBLIC ECONOMICS
dc.subjectPUBLIC EXPENDITURE
dc.subjectPUBLIC FINANCE
dc.subjectPUBLIC FINANCIAL MANAGEMENT
dc.subjectPUBLIC HOUSING
dc.subjectPUBLIC MANAGEMENT
dc.subjectPUBLIC POLICY
dc.subjectPUBLIC SECTOR
dc.subjectPUBLIC SECTOR WAGES
dc.subjectPUBLIC SERVICE
dc.subjectPURCHASING POWER
dc.subjectREDISTRIBUTION
dc.subjectREDISTRIBUTION OF INCOME
dc.subjectREDISTRIBUTIVE IMPACT
dc.subjectRESOURCE SHARING
dc.subjectRETURN
dc.subjectRETURNS
dc.subjectREVENUE ADEQUACY
dc.subjectREVENUE AFTER TRANSFER
dc.subjectREVENUE CAPACITY
dc.subjectREVENUE COLLECTION
dc.subjectREVENUE SHARING MECHANISM
dc.subjectREVENUE SOURCES
dc.subjectROADS
dc.subjectSMALL TOWN
dc.subjectSOCIAL PROTECTION
dc.subjectSOCIAL WELFARE
dc.subjectSTATE GOVERNMENTS
dc.subjectSUB-NATIONAL
dc.subjectSUB-NATIONAL EXPENDITURES
dc.subjectSUB-NATIONAL GOVERNMENT
dc.subjectSUB-NATIONAL GOVERNMENTS
dc.subjectSUBNATIONAL
dc.subjectSUBNATIONAL EXPENDITURES
dc.subjectTAX
dc.subjectTAX ADMINISTRATION
dc.subjectTAX BASE
dc.subjectTAX BURDENS
dc.subjectTAX DECENTRALIZATION
dc.subjectTAX EFFORT
dc.subjectTAX EFFORTS
dc.subjectTAX RATE
dc.subjectTAX REVENUE
dc.subjectTAX REVENUE SHARING
dc.subjectTAX SHARING
dc.subjectTAX SHARING SYSTEM
dc.subjectTAX SYSTEM
dc.subjectTECHNICAL ASSISTANCE
dc.subjectTOTAL EXPENDITURES
dc.subjectTRANSPARENCY
dc.subjectTREASURIES
dc.subjectUPPER HOUSE
dc.subjectVILLAGES
dc.subjectVOTING
dc.titleGeneral Purpose Central-provincial-local Transfers (DAU) in Indonesia : From Gap Filling to Ensuring Fair Access to Essential Public Services for Allen
dspace.entity.typePublication
okr.crossref.titleGeneral Purpose Central-Provincial-Local Transfers (DAU) in Indonesia: From Gap Filling to Ensuring Fair Access to Essential Public Services for all
okr.date.doiregistration2025-04-10T10:58:52.719704Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/2012/06/16338364/general-purpose-central-provincial-local-transfers-dau-indonesia-gap-filling-ensuring-fair-access-essential-public-services-all
okr.globalpracticeMacroeconomics and Fiscal Management
okr.globalpracticeFinance and Markets
okr.globalpracticeGovernance
okr.guid585521468049737674
okr.identifier.doi10.1596/1813-9450-6075
okr.identifier.externaldocumentum000158349_20120606123913
okr.identifier.internaldocumentum16338364
okr.identifier.reportWPS6075
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2012/06/06/000158349_20120606123913/Rendered/PDF/WPS6075.pdfen
okr.region.administrativeEast Asia and Pacific
okr.region.countryIndonesia
okr.topicPublic Sector Economics
okr.topicMacroeconomics and Economic Growth::Subnational Economic Development
okr.topicBanks and Banking Reform
okr.topicGovernance::National Governance
okr.topicFinance and Financial Sector Development::Debt Markets
okr.topicPublic Sector Development
okr.unitDevelopment Research Group (DECRG)
okr.volume1 of 1
relation.isAuthorOfPublicationb34d7c24-e8b3-5886-aa6e-371ab8fa114e
relation.isAuthorOfPublication.latestForDiscoveryb34d7c24-e8b3-5886-aa6e-371ab8fa114e
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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