Governance Decentralization in The Fiscal of Rural Cooperation in Indonesia, A Literature Review

Elly Rustiny (), Utang Suwaryo (), Nandang Alamsah Deliarnoor () and Dede Sri Kartini ()
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Elly Rustiny: Universitas Padjadjaran, Department of Governmen Science, Faculty of Social and Political Sciences
Utang Suwaryo: Universitas Padjadjaran, Department of Governmen Science, Faculty of Social and Political Sciences
Nandang Alamsah Deliarnoor: Universitas Padjadjaran, Department of Governmen Science, Faculty of Social and Political Sciences
Dede Sri Kartini: Universitas Padjadjaran, Department of Governmen Science, Faculty of Social and Political Sciences

A chapter in Proceedings of the International Conference on Business, Economics, Social Sciences, and Humanities - Economics, Business and Management Track (ICOBEST-EBM 2024), 2024, pp 165-181 from Springer

Abstract: Abstract The district and municipal administrations in Indonesia require support from the central and provincial governments for funding infrastructure projects. The budget of government entities at the district and municipal levels in Indonesia displays a higher proportion of financial assistance from the central government compared to its Own-Source Revenue (PAD), indicating a greater degree of financial reliance on external sources. This issue is of particular interest as the execution of local fiscal strategies contributes to widening economic gaps among different regions, leading to notable vertical fiscal imbalances. The primary objective of the research is to assess how collaboration influences the efficacy of joint governance in executing local fiscal policies by overseeing the allocation and supervision of financial aid resources based on an extensive examination of existing literature. The analysis reveals that cooperative governance of local fiscal policies is linked to enhanced regional development. Consequently, there is potential for enhancing the management of financial support by engaging diverse stakeholders towards achieving program objectives.

Keywords: Collaborative Governance; Regional Fiscal Policy; Financial Assistance (search for similar items in EconPapers)
Date: 2024
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DOI: 10.2991/978-94-6463-465-5_14

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