Spending for Development : Making the Most of Indonesia's New Opportunities
This Public Expenditure Review (PER) examines and explains some of the constraints facing the government in public resource management and allocation, and offers recommendations for improvements in six critical areas: fiscal space, education, healt...
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| Format: | Publication |
| Language: | English en_US |
| Published: |
Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2008/01/9015023/indonesia-public-expenditure-review-spending-development-making-most-indonesias-new-opportunities http://hdl.handle.net/10986/6347 |
| Summary: | This Public Expenditure Review (PER)
examines and explains some of the constraints facing the
government in public resource management and allocation, and
offers recommendations for improvements in six critical
areas: fiscal space, education, health, infrastructure,
public financial management, and decentralization. Although
Indonesia has made important progress in reforming its
public finances and increasing transparency,
Indonesia's reform agenda, as highlighted by the PER,
is far from complete. Equity and efficiency of spending
remain major issues, for instance finding an optimal
allocation of resources that reflects development
priorities, and achieving an annual spending pattern that is
no longer strongly skewed towards the end of the financial
year. This report tries to establish the facts about
Indonesia's public expenditures, presenting trends over
time and analyzing the composition across sectors and levels
of government. It presents comprehensive information on key
sectors, including sub-national governments and state-owned
enterprises in key infrastructure sectors. Based on these
facts, the report asks: Who benefits from these substantial
amounts of public resources? Where are the gaps? Which
regions are well-endowed? Which regions are lagging behind?
In addition to these questions, this report also tries to
respond to key concerns that are in the minds of many
ordinary Indonesians and friends of Indonesia, such as: Can
Indonesia afford to spend more? Is the current level of
education and health spending sufficient? How to revitalize
infrastructure investment, and which sectors are the
priorities? Why is it so difficult to disburse funds through
the government budget system? How unequal is Indonesia and
how should fiscal transfers be structured to equalize
disparities? This report addresses seven critical
expenditure areas. The first two chapters (Chapter 1 on
fiscal space and Chapter 2 on cross-sectoral allocations)
discuss how much money is available to the government and
how it is allocated across sectors and levels of government.
The following three chapters on education, health, and
infrastructure analyze how resources are currently allocated
within these critical sectors and how effectively they are
used. The final two chapters (Chapter 6 on public financial
management and Chapter 7 on decentralization) highlight
institutional and crosscutting issues in effective public
expenditure management |
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