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Intergovernmental fiscal relations in Indonesia: issues and reform options

  • Anwar Shah
  • Zia Qureshi
  • Amaresh Bagchi
  • Brian Binder
  • Heng-fu Zou

The paper describes and assesses intergovernmental fiscal relations in Indonesia and outlines options for reform. The discussion encompasses issues in all major aspects of fiscal relations between the national and subnational governments: expenditure assignment; tax assignment; intergovernmental transfers; reform of subnational taxes and user charges; subnational government borrowing; the framework for planning, budgeting and implementation; and development of subnational government institutional capacities. The focus is on systemic issues of reform. The paper's objective is to present an analytical framework to guide the reform of the intergovernmental fiscal system, and, using that framework, sketch out a broad agenda for fiscal decentralization and development of subnational government financial and institutional capacities. The paper does not seek to develop detailed recommendations for decentralization for individual sectors or public services.

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File URL: http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/1994/10/01/000009265_3970311123821/Rendered/PDF/multi_page.pdf
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Paper provided by China Economics and Management Academy, Central University of Finance and Economics in its series CEMA Working Papers with number 474.

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Length: 318 pages
Date of creation: 31 Oct 1994
Date of revision:
Publication status: Published as World Bank Discussion Papers No.239
Handle: RePEc:cuf:wpaper:474
Contact details of provider: Web page: http://cema.cufe.edu.cn/

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