Intergovernmental Grants Systems and Management: Applications of a General Framework to Indonesia
August 1, 2002
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Summary
Intergovernmental equalization grants have been described as “the glue that holds a nation together.” Getting the grants system right is critical to countries as they decentralize. This paper illustrates general principles with an example based on Indonesia in 2000. A general grant should be used to supplement own revenues and to finance local service provision where there are no central mandates. The special needs of backward regions would be better provided for by specific grants. Specific grants need to be taken into account in the general grants scheme.
Subject: Education, Expenditure, Health, Population and demographics, Total expenditures
Keywords: Africa, Equalization Grants, expenditure need, Fiscal Decentralization, governance law, government administration, Indonesia, recipient government, revenue capacity, tax rate, Total expenditures, WP
Pages:
33
Volume:
2002
DOI:
Issue:
128
Series:
Working Paper No. 2002/128
Stock No:
WPIEA1282002
ISBN:
9781451855067
ISSN:
1018-5941
