IDEAS home Printed from https://ideas.repec.org/p/lpe/wpaper/202159.html
   My bibliography  Save this paper

Province and Local Finances in Indonesia during COVID-19 Pandemic

Author

Listed:
  • Riatu Mariatul Qibthiyyah

    (Institute for Economic and Social Research, Faculty of Economics and Business, Universitas Indonesia (LPEM FEB UI))

Abstract

In the year 2020, in response to COVID-19 health crisis, there were series of adjustment adopted by provinces and local governments. From their stated revised budget, most of provinces and local governments responded by shifting spending allocation to COVID-19 related activities mitigation, rather than by expanding expenditures. Lower-level government average expenditures growth in 2020 is -10.11% and -12.11% respectively for provinces and local governments. Expenditure contraction occurred in all provinces and only 12.4% of local governments show of a positive growth in its public expenditures. On the type of expenditures adjustment, a high increase of emergency spending which covered of 3.3% of total provinces and local government expenditures, may also translate to higher health expenditures. Based on aggregate provincial level data and given that COVID-19 fatalities were concentrated in Java-Bali region, the preliminary results show that emergency spending seem effective in reducing COVID-19 fatalities for the case of provinces in Java-Bali region.

Suggested Citation

  • Riatu Mariatul Qibthiyyah, 2021. "Province and Local Finances in Indonesia during COVID-19 Pandemic," LPEM FEBUI Working Papers 202159, LPEM, Faculty of Economics and Business, University of Indonesia, revised 2021.
    • Handle: RePEc:lpe:wpaper:202159
    as

    Download full text from publisher

    File URL: https://www.lpem.org/repec/lpe/papers/WP202159.pdf
    File Function: First version, 2021
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. World Bank, 2020. "The COVID-19 Pandemic [Pandémie De Covid-19]," World Bank Publications - Reports 33696, The World Bank Group.
    2. Susan Olivia & John Gibson & Rus’an Nasrudin, 2020. "Indonesia in the Time of Covid-19," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 56(2), pages 143-174, May.
    3. World Bank, 2020. "Indonesia Public Expenditure Review 2020," World Bank Publications - Reports 33954, The World Bank Group.
    4. World Bank, 2020. "Spending Better to Reduce Stunting in Indonesia," World Bank Publications - Reports 34196, The World Bank Group.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Aisyah Nurrul Jannah & Khoirunurrofik, 2022. "The Impact of COVID-19 Pandemic on Local Fiscal Revenue: Empirical Evidence from the Regions with Dominant Tertiary Sectors," Economics and Finance in Indonesia, Faculty of Economics and Business, University of Indonesia, vol. 68, pages 87-101, Desember.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Valerio, Erika & Hilmiati, Nurul & Prior, Julian & Dahlanuddin, Dahlan, 2022. "Analysis of the agricultural innovation system in Indonesia: A case study of the beef sector in Nusa Tenggara Barat," Agricultural Systems, Elsevier, vol. 203(C).
    2. Jessica Birkholz & Jarina Kühn, 2021. "Entrepreneurship Perception during the first COVID-19 Shock: Mental Representations of Entrepreneurship and Preferences of Business Models during the Pandemic," Bremen Papers on Economics & Innovation 2105, University of Bremen, Faculty of Business Studies and Economics.
    3. Rebeca Anguren & Luis Gutiérrez de Rozas & Esther Palomeque & Carlos José Rodríguez García, 2020. "The regulatory and supervisory response to the COVID-19 crisis," Revista de Estabilidad Financiera, Banco de España, issue Autumn.
    4. Lawan Cheri, 2021. "Perceived Impact of Border Closure due to Covid-19 of Intending Nigerian Migrants," Social Inclusion, Cogitatio Press, vol. 9(1), pages 207-215.
    5. Monica Ionelia MARGARIT, 2020. "The Monetary Policy Of Central And East European Countries During The Coronavirus Crisis," Scientific Bulletin - Economic Sciences, University of Pitesti, vol. 19(3), pages 111-116.
    6. Alkire, Sabina & Nogales, Ricardo & Quinn, Natalie Naïri & Suppa, Nicolai, 2021. "Global multidimensional poverty and COVID-19: A decade of progress at risk?," Social Science & Medicine, Elsevier, vol. 291(C).
    7. Gourlay, Sydney & Kilic, Talip & Martuscelli, Antonio & Wollburg, Philip & Zezza, Alberto, 2021. "Viewpoint: High-frequency phone surveys on COVID-19: Good practices, open questions," Food Policy, Elsevier, vol. 105(C).
    8. Abel Brodeur & David Gray & Anik Islam & Suraiya Bhuiyan, 2021. "A literature review of the economics of COVID‐19," Journal of Economic Surveys, Wiley Blackwell, vol. 35(4), pages 1007-1044, September.
    9. Lucia Granelli & Matteo Brunelli, 2022. "Comparing the Macroeconomic Policy Measures across the G20 The Crisis Response is a Long-Term Marathon," European Economy - Discussion Papers 158, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    10. Sarbajit Chaudhuri & Sushobhan Mahata & Salonkara Chaudhuri, 2022. "COVID-19 disaster and employment generation program in a developing economy," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 24(1), pages 46-64, June.
    11. Cronin, David, 2021. "Whither Cash in Payments?," Quarterly Bulletin Articles, Central Bank of Ireland, pages 64-87, January.
    12. Claire Greene & Joanna Stavins, 2022. "Credit Card Debt Puzzle: Liquid Assets to Pay Bills," Working Papers 22-8, Federal Reserve Bank of Boston.
    13. Tian, Zheng & Schmidt, Claudia & Goetz, Stephan J., 2022. "The Role of Community Food Services in Reducing U.S. Food Insufficiency in the COVID-19 Pandemic," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 47(3), September.
    14. World Bank, 2020. "Sierra Leone Economic Update, June 2020," World Bank Publications - Reports 34313, The World Bank Group.
    15. Antonia Wulff, 2021. "Global Education Governance in the Context of COVID-19: Tensions and Threats to Education as a Public Good," Development, Palgrave Macmillan;Society for International Deveopment, vol. 64(1), pages 74-81, June.
    16. Hessah Saad Alarifi & Mashael Saleh ALjuwayid & Wafa Abdulrahman Quraishi, 2021. "Between Justice and Regularity Between Justice and Regularity in Distance Education Homeschooling and Community Partnerships Solutions in the Light of the COVID-19 Pandemic," Technium Social Sciences Journal, Technium Science, vol. 25(1), pages 49-64, November.
    17. Sepahvand, Mohammad H. & Verwimp, Philip, 2023. "Fighting Covid-19 amidst civil conflict: Micro-level evidence from Burkina Faso," World Development, Elsevier, vol. 170(C).
    18. Amare, Mulubrhan & Abay, Kibrom A. & Tiberti, Luca & Chamberlin, Jordan, 2021. "COVID-19 and food security: Panel data evidence from Nigeria," Food Policy, Elsevier, vol. 101(C).
    19. Tan, Si Ying & Foo, Chuan De & Verma, Monica & Hanvoravongchai, Piya & Cheh, Paul Li Jen & Pholpark, Aungsumalee & Marthias, Tiara & Hafidz, Firdaus & Prawidya Putri, Likke & Mahendradhata, Yodi & Gia, 2023. "Mitigating the impacts of the COVID-19 pandemic on vulnerable populations: Lessons for improving health and social equity," Social Science & Medicine, Elsevier, vol. 328(C).
    20. Anna Doś & Monika Wieczorek-Kosmala & Joanna Błach, 2022. "The Effect of Business Legal Form on the Perception of COVID-19-Related Disruptions by Households Running a Business," Risks, MDPI, vol. 10(4), pages 1-17, April.

    More about this item

    Keywords

    state and local finance — government expenditure — pandemic COVID-19 — emergency spending;

    JEL classification:

    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:lpe:wpaper:202159. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Arianto Patunru (email available below). General contact details of provider: https://edirc.repec.org/data/feuinid.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.