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Intergovernmental Grants Systems and Management: Applications of a General Framework to Indonesia

Author

Listed:
  • Mr. Bob Searle
  • Jun Ma
  • Mr. Stefano Piperno
  • Mr. Ehtisham Ahmad

Abstract

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.

Suggested Citation

  • Mr. Bob Searle & Jun Ma & Mr. Stefano Piperno & Mr. Ehtisham Ahmad, 2002. "Intergovernmental Grants Systems and Management: Applications of a General Framework to Indonesia," IMF Working Papers 2002/128, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2002/128
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    File URL: http://www.imf.org/external/pubs/cat/longres.aspx?sk=15943
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    Cited by:

    1. Mr. Ehtisham Ahmad & Ms. Mercedes Garcia-Escribano & José Antonio González Anaya & Mr. Ernesto Revilla & Mr. Giorgio Brosio & Mr. Ben Lockwood, 2007. "Why Focus on Spending Needs Factors? The Political Economy of Fiscal Transfer Reforms in Mexico," IMF Working Papers 2007/252, International Monetary Fund.
    2. Nasution, Anwar, 2016. "Government Decentralization Program in Indonesia," ADBI Working Papers 601, Asian Development Bank Institute.
    3. Rosengard, Jay, 2004. "Will Bank Bailouts Bust Budgets? Fiscalization of the East Asian Financial Crisis," Working Paper Series rwp04-012, Harvard University, John F. Kennedy School of Government.

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