Spending for Development : Making the Most of Indonesia's New Opportunities, Indonesia Public Expenditure Review 2007

World Bank

Washington, DC

关键词: ALLOCATION OF RESOURCES;    DECENTRALIZATION;    EDUCATION;    FISCAL SPACE;    HEALTH;   

RP-ID  :  38772

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

This Public Expenditure Review (PER)2007 examines and explains some of the constraints facingthe government in public resource management and allocation,and offers recommendations for improvements in six criticalareas: fiscal space, education, health, infrastructure,public financial management and decentralization. AlthoughIndonesia has made important progress in reforming itspublic finances and increasing transparency,Indonesia's reform agenda, as highlighted by the PER,is far from complete. Equity and efficiency of spendingremain major issues, for instance finding an optimalallocation of resources that reflects developmentpriorities, and achieving an annual spending pattern that isno longer strongly skewed towards the end of the financialyear. This report tries to establish the facts aboutIndonesia's public expenditures, presenting trends overtime and analyzing the composition across sectors and levelsof government. It presents comprehensive information on keysectors, including sub-national governments and state-ownedenterprises in key infrastructure sectors. Based on thesefacts, the report asks: Who benefits from these substantialamounts of public resources? Where are the gaps? Whichregions are well-endowed? Which regions are lagging behind?In addition to these questions, this report also tries torespond to key concerns that are in the minds of manyordinary Indonesians and friends of Indonesia, such as: CanIndonesia afford to spend more? Is the current level ofeducation and health spending sufficient? How to revitalizeinfrastructure investment, and which sectors are thepriorities? Why is it so difficult to disburse funds throughthe government budget system? How unequal is Indonesia andhow should fiscal transfers be structured to equalizedisparities? This report addresses seven criticalexpenditure areas. The first two chapters (Chapter 1 onfiscal space and Chapter 2 on cross-sectoral allocations)discuss how much money is available to the government andhow it is allocated across sectors and levels of government.The following three chapters on education, health, andinfrastructure analyze how resources are currently allocatedwithin these critical sectors and how effectively they areused. The final two chapters (Chapter 6 on public financialmanagement and Chapter 7 on decentralization) highlightinstitutional and crosscutting issues in effective publicexpenditure management.