Lewis, Blane D.Oosterman, Andre2012-03-302012-03-302009-07Public Budgeting and Finance02751100https://hdl.handle.net/10986/4687Since Indonesia began implementing its decentralization program in 2001, subnational unspent balances have grown rapidly and have reached levels that many officials find unreasonably high. But the extent to which subnational government reserves are excessive, in general, is not obvious. A not implausible decrease in the price of oil would reduce transfers to subnationals significantly and, if sustained, could possibly eliminate reserves in a relatively short time. Central government should not take any immediate action to reduce subnational slack resources directly but should instead focus on removing the underlying causes of such.ENState and Local Taxation, Subsidies, and Revenue H710State and Local Budget and Expenditures H720Intergovernmental RelationsFederalismSecession H770Formal and Informal SectorsShadow EconomyInstitutional Arrangements O170Economic Development: Regional, Urban, and Rural AnalysesTransportation O180Journal ArticleWorld Bank