TY - JOUR
T1 - The impact of decentralization on subnational government fiscal slack in Indonesia
AU - Lewis, Blane
AU - Oosterman, A
PY - 2009
Y1 - 2009
N2 - Since 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.
AB - Since 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.
U2 - 10.1111/j.1540-5850.2009.00927.x
DO - 10.1111/j.1540-5850.2009.00927.x
M3 - Article
SN - 0275-1100
VL - 29
SP - 27
EP - 47
JO - Public Budgeting and Finance
JF - Public Budgeting and Finance
IS - 2
ER -