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Citation Information

Type Thesis or Dissertation - Master thesis
Title Fiscal Capacity Disparity among the Provinces in Indonesia and the Role of General Purpose Grant in Reducing Fiscal Capacity Disparity in the Decentralization Era
Author(s)
Publication (Day/Month/Year) 2010
URL http://211.253.40.86/mille/service/SAT/10000/IMG/000000005411/2010fall_Kurnia.pdf
Abstract
Indonesia consists of 33 provinces, each of which has different performance in generating their revenue. The difference is caused by the fact that some provinces are endowed with rich natural resources and potential economic activity when some are not. These conditions produce fiscal capacity disparity among the provinces in Indonesia. In order to reduce the fiscal capacity disparity, Indonesia, which has started fiscal decentralization since 2001, implemented General Purpose Grant in its intergovernmental transfer scheme. This research attempts to find out whether the General Purpose Grant has succeeded to reduce fiscal capacity disparity among the provinces in Indonesia and try to describe the trend of FISCAL capacity disparity before and after decentralization implemented. The observed data is all provinces from 1994 to 2007.

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