World Bank2013-08-162013-08-162000-03-30https://hdl.handle.net/10986/15140The study identifies strategic priorities for restoring sound public finances, emphasizing the need to maintain fiscal sustainability, under a constrained budget, and the need to improve the processes for making budgetary allocations, and budget implementation, towards greater fiscal transparency. It reviews Indonesia's public spending during the crisis, and the unavoidable build-up of fiscal pressure, its indebtedness, and fiscal risks, coupled with policy implications. Improvements to the budget allocation process are examined, focusing on budgetary management processes, across levels of government, and on the impact of decentralization - which could possibly reinforce civil society participation. A shift in the fiscal policy focus, towards maintaining fiscal sustainability, and ensuring economic recovery is recommended. Nonetheless, risks may threaten fiscal sustainability, namely, macroeconomic fluctuations, contingent liabilities, and decentralization. To minimize risks, the study suggests a combination of domestic revenue generation efforts, spending cuts, accelerated privatization, aggressive asset recovery, and external finance.en-USCC BY 3.0 IGOACCOUNTABILITYACCOUNTINGACCOUNTING STANDARDSADBALMANTI-CORRUPTIONAPPROPRIATIONSAUDITINGAUDITORSAUDITSAUTHORITYAUTHORIZATIONAUTONOMYBANK OF INDONESIABANK RECAPITALIZATIONBANK RESTRUCTURINGBANKING SECTORBASE YEARBONDSBUDGET DEFICITBUDGET DEFICITSBUDGET FORMULATIONBUDGET LIABILITIESBUDGET MANAGEMENTBUDGET PROCESSBUDGET SYSTEMBUDGETARY ALLOCATIONBUDGETARY ALLOCATIONSBUDGETARY INSTITUTIONSBUDGETARY PROCESSESBUDGETARY SUPPORTCAPITAL GOODSCENTRAL GOVERNMENTCITIZENSCIVIL SERVICECOMPLEX TASKCORRUPTIONCURRENT EXPENDITURESDEBT MANAGEMENTDEBT SERVICEDECENTRALIZATION PROCESSDECISION TREEDECISION- MAKINGDECISION-MAKINGDEMOCRACYDEVELOPMENT PROJECTSDISCLOSUREECONOMIC COOPERATIONECONOMIC GROWTHECONOMIC RECOVERYELECTRICITYEMPLOYMENTEQUALIZATIONEXCHANGE RATEEXCHANGE RATESEXECUTIONEXPENDITURE ASSIGNMENTSEXPENDITURE RESPONSIBILITIESFINANCIAL MANAGEMENTFINANCIAL MARKETSFISCALFISCAL BALANCEFISCAL CONDITIONSFISCAL DECENTRALIZATIONFISCAL DEFICITFISCAL DEFICITSFISCAL DISCIPLINEFISCAL POLICYFISCAL PRESSUREFISCAL PRESSURESFISCAL SITUATIONFISCAL STANCEFISCAL SUSTAINABILITYFISCAL TRANSPARENCYFISCAL YEARFOREIGN DEBTFOREIGN EXCHANGEGDPGOVERNMENT AGENCIESGOVERNMENT BORROWINGGOVERNMENT DEBTGOVERNMENT EXPENDITURESGOVERNMENT RESOURCESGOVERNMENT REVENUESGOVERNMENT SAVINGSGOVERNMENT SUBSIDIESGROSS DOMESTIC PRODUCTHARD BUDGET CONSTRAINTSHEALTH SPENDINGHOUSINGINCOMEINCOME SUPPORTINFLATIONINFORMATION DISSEMINATIONINSTITUTIONAL ARRANGEMENTSINTEREST INCOMEINTEREST RATEINTEREST RATESINTERNAL AUDITINVENTORYLAWSLEVELS OF GOVERNMENTLIABILITY MANAGEMENTLOCAL GOVERNMENTLOCAL GOVERNMENT BORROWINGLOCAL TAXMACROECONOMIC STABILIZATIONMANDATESMEMBERS OF PARLIAMENTMINISTERSMINISTRIES OF FINANCEMINISTRY OF FINANCEMONETARY POLICYNATIONAL PLANNINGNATIONSOILOIL PRICESPOLICY DECISIONSPOLITICIANSPRICE FLUCTUATIONSPRIVATE SECTORPRIVATIZATIONPRODUCERSPRODUCTION FUNCTIONPRODUCTIVITYPUBLIC EXPENDITUREPUBLIC EXPENDITURE MANAGEMENTPUBLIC EXPENDITURE REVIEWPUBLIC EXPENDITURESPUBLIC FINANCESPUBLIC FUNDSPUBLIC MANAGEMENTPUBLIC POLICYPUBLIC SECTORPUBLIC SERVICEPUBLIC SERVICE DELIVERYPUBLIC SERVICE PROVISIONPUBLIC SERVICESPUBLIC SPENDINGPUBLIC SPENDING PROGRAMSREPRESENTATIVESRESOURCE ALLOCATIONRESOURCE MOBILIZATIONRISK MANAGEMENTROADSSAVINGS ACCOUNTSSOCIAL SAFETYSOCIAL SAFETY NETSOCIAL SAFETY NETSSOCIAL SECTORSSTATE BUDGETTAX ADMINISTRATIONTAX EXEMPTIONSTAX POLICYTAX REVENUESTECHNICAL ASSISTANCETECHNOCRATSTIMBERTOTAL FACTOR PRODUCTIVITYTREASURYVALUE ADDEDWAGES FISCAL POLICYFINANCIAL CRISESDEBT FINANCINGFISCAL ADJUSTMENTSDECENTRALIZATION IN GOVERNMENTREVENUE MEASURESPUBLIC FINANCEFISCAL SUSTAINABILITYBUDGET CONTROLBUDGET DEFICITSBANKING CRISESDOMESTIC DEBTBANK RESTRUCTURINGREVENUE VOLATILITYECONOMIC RECOVERYOIL PRICESENERGY SUBSIDIESMACROECONOMIC ADJUSTMENTREVENUE MOBILIZATIONASSET REVALUATIONRISK MANAGEMENTDEBT MANAGEMENTWorld Bank10.1596/15140