World Bank2012-06-122012-06-122007-07https://hdl.handle.net/10986/7819Already one of the poorest regions in Indonesia, the island of Nias was badly affected by the twin disasters of the 26 December 2004 tsunami and a devastating earthquake that struck three months later, on 28 March 2005. Now, more than two years after the disasters and despite the significant progress that has undoubtedly been made, some troubling trends are starting to emerge, of which this report takes stock. In particular, funds are not being disbursed at the desired pace as the reconstruction effort faces enormous implementation challenges. The allocation of significant resources for reconstruction, as well as the decentralization process, entails both opportunities and challenges for the development of Nias. This report assists in making use of those opportunities and overcoming the challenges by informing the planning and budgeting process of the two district governments in Nias, and analyzing constraints in public financial management in both districts, as well as identifying key gaps in the reconstruction process.CC BY 3.0 IGOACCOUNTINGADVERTISEMENTAGGREGATE REVENUEALLOCATIONALLOCATION OF FUNDSALLOCATION OF RESOURCESBANK INDONESIABORROWINGBUDGET ALLOCATIONBUDGET ALLOCATIONSBUDGET BALANCEBUDGET DATABUDGET SURPLUSBUDGETINGBUDGETING PROCESSCALCULATIONCALCULATIONSCENTRAL GOVERNMENTCENTRAL GOVERNMENT BUDGETCIVIL SERVANTSCIVIL SERVICECIVIL SERVICE SALARIESCOMMERCIAL BANKSCOMMODITIESCONTRIBUTIONCONTRIBUTIONSCOST OF COLLECTIONDATA COLLECTIONDEBTSDECENTRALIZATIONDECENTRALIZATION PROCESSDECONCENTRATIONDEPOSITDEPOSIT ACCOUNTSDEPOSIT INTERESTDISBURSEMENTDISBURSEMENTSDISTRICT GOVERNMENTSECONOMIC ACTIVITIESECONOMIC ACTIVITYECONOMIC CLASSIFICATIONEDUCATION SPENDINGEDUCATIONAL ATTAINMENTEFFECTIVENESS OF PUBLIC SPENDINGELECTRICITYFINANCE INFORMATION SYSTEMFINANCE MINISTRYFINANCIAL ASSISTANCEFINANCIAL CRISISFINANCIAL IMPACTFINANCIAL MANAGEMENT CAPACITYFINANCIAL RESOURCESFINANCIAL SERVICESFINANCIAL STATISTICSFINANCIAL SUPPORTFISCAL CAPACITYFISCAL CONDITIONSFISCAL GAPSFISCAL IMBALANCESFISCAL MANAGEMENTFISCAL POSITIONFISCAL POSITIONSFUNGIBLEGOVERNMENT BUDGETGOVERNMENT BUDGETSGOVERNMENT CAPACITYGOVERNMENT EXPENDITUREGOVERNMENT REGULATIONSGOVERNMENT REVENUEGOVERNMENT REVENUESGOVERNMENT SPENDINGGROSS DOMESTIC PRODUCTHEALTH EXPENDITUREHEALTH OUTCOMESHEALTH SPENDINGHEALTH SYSTEMSHEALTH WORKERSHIGHER ALLOCATIONSHIGHER INFLATIONHOUSINGHUMAN DEVELOPMENTIMMUNIZATIONINCENTIVE MECHANISMSINCOME LEVELSINFLATIONINFLATION RATEINFLATION RATESINFRASTRUCTURE EXPENDITUREINFRASTRUCTURE PROJECTSINFRASTRUCTURE SECTORINFRASTRUCTURE SERVICESINTERNATIONAL STANDARDINVESTINGLEVIESLEVYLIFE EXPECTANCYLIMITED INCOMELITERACYLOANLOCAL AUTONOMYLOCAL CAPACITYLOCAL ECONOMYLOCAL GOVERNMENTLOCAL TAXESMAINTENANCE COSTSMDFMIGRATIONMINISTRY OF FINANCENATIONAL BUDGETNATIONAL DEVELOPMENTNATIONAL PRIORITIESNATURAL RESOURCESOPERATIONAL COSTSPERSONAL INCOMEPERSONAL INCOME TAXPERSONNEL EXPENDITUREPERSONNEL EXPENSESPORTSPOVERTY LEVELPOVERTY LEVELSPOVERTY RATEPOVERTY RATESPROGRAMSPROVINCIAL GOVERNMENTPROVINCIAL GOVERNMENTSPUBLICPUBLIC ASSETSPUBLIC EDUCATIONPUBLIC EXPENDITUREPUBLIC EXPENDITURE ANALYSISPUBLIC EXPENDITURESPUBLIC FINANCESPUBLIC FINANCIAL MANAGEMENTPUBLIC FUNDSPUBLIC HEALTHPUBLIC INFRASTRUCTUREPUBLIC RESOURCESPUBLIC REVENUEPUBLIC SERVICEPUBLIC SERVICE DELIVERYPUBLIC SERVICE PROVISIONPUBLIC SERVICESPUBLIC SPENDING PATTERNSPUBLIC WORKSQUALITY OF SERVICESREAL ESTATEREAL ESTATE TRANSFER TAXREGIONAL GOVERNMENTREGIONAL GOVERNMENTSREPAYMENTRESERVERESERVESRESPONSIBILITIESREVENUE SHARINGREVENUE SOURCESROAD NETWORKROADSSANITATIONSECONDARY SCHOOLSECTORAL ALLOCATIONSSECTORAL EXPENDITURESENIORSERVICE DELIVERY FUNCTIONSSERVICE FACILITIESSERVICE PROVISIONSOCIAL INDICATORSSOCIAL OUTCOMESSOCIAL SERVICESOCIAL WELFARESPENDING LEVELSSTATE BUDGETSTOCK EXCHANGESTREET LIGHTINGTAX BASETAX BASESTAX COLLECTIONTAX REGULATIONSTAX REVENUETAX REVENUESTAX SHARINGTOTAL EXPENDITURETOTAL PUBLIC EXPENDITURETOTAL SPENDINGTRANSPORTUNEXPECTED EXPENSESUSER CHARGESVALUABLEWAGEWAREHOUSEWATER SUPPLYWorld Bank10.1596/7819