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Public expenditure management in Indonesia: Islamic economic review on state budget 2017

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  • Jaelani, Aan

Abstract

This paper discusses the management of public expenditures in Indonesia in State Budget 2017. The data collected from fiscal policy documents, especially about government spending plans in 2017, and then be reviewed by policy analysis, the theory of public expenditures, and the theory of public goods, and compared with the theory of public expenditure in Islamic economics. Public expenditure management in Indonesia has implemented a distribution system that divided public expenditure for central government expenditures, transfers to the regions, and the village fund. In terms of fiscal policy, public expenditure priorities to support the achievement of sustainable economic growth, job creation, poverty reduction, and the reduction of gaps in the welfare of the whole community. In Islamic economics, public expenditure is used to meet the needs of the community based on the principles of general interest derived from the shari'a. Public expenditure on Indonesia's government as an effective tool to divert economic resources and increase the income of society as a whole, and focused on the embodiment of the people's welfare

Suggested Citation

  • Jaelani, Aan, 2018. "Public expenditure management in Indonesia: Islamic economic review on state budget 2017," MPRA Paper 87025, University Library of Munich, Germany, revised 02 May 2018.
  • Handle: RePEc:pra:mprapa:87025
    as

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    File URL: https://mpra.ub.uni-muenchen.de/87025/1/MPRA_paper_87025.pdf
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    References listed on IDEAS

    as
    1. Aan Jaelani, 2017. "Fiscal Policy in Indonesia: Analysis of State Budget 2017 in Islamic Economic Perspective," International Journal of Economics and Financial Issues, Econjournals, vol. 7(5), pages 14-24.
    2. Jaelani, Aan, 2017. "Economic philosophy of al-Mawardi: Review of economic behaviour in Islamic economic," MPRA Paper 84488, University Library of Munich, Germany, revised 18 Jan 2018.
    3. Juergen Backhaus & Richard Wagner, 1987. "The cameralists: A public choice perspective," Public Choice, Springer, vol. 53(1), pages 3-20, January.
    4. McGuire, Martin C & Aaron, Henry J, 1969. "Efficiency and Equity in the Optimal Supply of a Public Good," The Review of Economics and Statistics, MIT Press, vol. 51(1), pages 31-39, February.
    5. James M. Buchanan & Richard A. Musgrave, 1999. "Public Finance and Public Choice: Two Contrasting Visions of the State," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262024624, March.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    State budget; fiscal policy; public expenditure; Islamic Economic;

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • H5 - Public Economics - - National Government Expenditures and Related Policies
    • O23 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Fiscal and Monetary Policy in Development
    • P5 - Economic Systems - - Comparative Economic Systems
    • P50 - Economic Systems - - Comparative Economic Systems - - - General

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