Publication: A Note on the Indonesian Sub-National Government Surplus, 2001-2006
Date
2008-01
ISSN
Published
2008-01
Author(s)
Lewis, Blane D.
Abstract
The Indonesian government has devolved
significant expenditure authority to sub-national units
since 2001. New sub-national government expenditure
assignments have been paid for by a substantial increase in
intergovernmental transfers to lower levels of government.
The center has decided against devolving any significant new
tax authority to the regions, at least for the time being.
This note examines some fundamental issues related to these
unspent funds. The paper has two particular objectives.
First, the paper describes the basic features of
sub-national government surplus and reserves since
decentralization, including their size and spatial
distribution. Second, it seeks to explain the observed
variation in surplus across sub-national governments,
according to some standard hypotheses. The paper proceeds as
follows. First, some basic information regarding the buildup
and geographic distribution of sub-national reserves is
offered. Second, the methodological approach to the study of
sub-national government surpluses is detailed. Third, the
results of the econometric examination are presented and
discussed. Finally, the note closes with a summary of the
main findings and a proposal for some additional research
that might be useful in the continuing development of
central policy in this area.
Citation
“Lewis, Blane D.. 2008. A Note on the Indonesian Sub-National Government Surplus, 2001-2006. © World Bank, Washington, DC. http://openknowledge.worldbank.org/handle/10986/28246 License: CC BY 3.0 IGO.”