Rationalizing fiscal policy and strengthening public expenditure management

Author(s):  
2018 ◽  
Vol 15 (2) ◽  
pp. 189-224
Author(s):  
Aan Jaelani

This paper discusses the management of public expenditures in Indonesia in State Budget 2017. The data collected from fiscal policy documents, especially about government spending plans in 2017, and then be reviewed by policy analysis, the theory of public expenditures, and the theory of public goods, and compared with the theory of public expenditure in Islamic economics. Public expenditure management in Indonesia has implemented a distribution system that divided public expenditure for central government expenditures, transfers to the regions, and the village fund. In terms of fiscal policy, public expenditure priorities to support the achievement of sustainable economic growth, job creation, poverty reduction, and the reduction of gaps in the welfare of the whole community. In Islamic economics, public expenditure is used to meet the needs of the community based on the principles of general interest derived from the sharia. Public expenditure on Indonesia’s government as an effective tool to divert economic resources and increase the income of society as a whole, and focused on the embodiment of the people’s welfare.


Author(s):  
Aan Jaelani

This paper discusses the management of public expenditures in Indonesia in State Budget 2017. The data collected from fiscal policy documents, especially about government spending plans in 2017, and then be reviewed by policy analysis, the theory of public expenditures, and the theory of public goods, and compared with the theory of public expenditure in Islamic economics. Public expenditure management in Indonesia has implemented a distribution system that divided public expenditure for central government expenditures, transfers to the regions, and the village fund. In terms of fiscal policy, public expenditure priorities to support the achievement of sustainable economic growth, job creation, poverty reduction, and the reduction of gaps in the welfare of the whole community. In Islamic economics, public expenditure is used to meet the needs of the community based on the principles of general interest derived from the shari'a. Public expenditure on Indonesia's government as an effective tool to divert economic resources and increase the income of society as a whole, and focused on the embodiment of the people's welfare.


2016 ◽  
Vol 35 (67) ◽  
pp. 253-279
Author(s):  
Ligia Alba Melo-Becerra

This article presents a comparative analysis of the optimal fiscal response to shocks in the sub-national public sector in cooperative and non-cooperative models. The analysis is undertaken by comparing models that assume idiosyncratic demandside shocks and sub-national autonomy to collect taxes, with models that assume that the central government collects the taxes of the whole country and redistributes them across regions. Results show that under symmetrical conditions, the non-cooperative solution may result in greater stabilization and lower sub-national public expenditure than the cooperative solution. However, if regional asymmetries are introduced into the model, results may be reversed.


2019 ◽  
Vol 9 (2) ◽  
pp. 71
Author(s):  
George Kojo Scott

This research analysed how the public expenditure management as practiced in the District Assemblies of Ghana affect service delivery. The research adopted a mixed-method research approach where qualitative and quantitative data were gathered using questionnaires, interviews, focus group discussions and document analysis. Multistage sampling was used to pick the respondents for the questionnaires, key interview informants and the participants in the focus group discussions. Thirty four out of 170 district assemblies which existed by 2008 were sampled. Participants in the study included 612 District Assembly (DA) officials, 1020 citizens, 28 national/regional officials and 20 participants in focus group discussions. Quantitative data, measured by using scaled-items, were analysed using descriptive statistics and regression while qualitative data were examined thematically. The study established that expenditure management practices had positive significant influence on service delivery. The study recommends that, the DAs should prioritize expenditures to key service delivery areas such as; those that enhance poverty reduction, improve on Human Capital index and strengthen Innovations practices. DAs should strengthen electronic, automation and appropriate technologies for better expenditure management and service delivery. There should be laws to ensure stiffer penalties and enforcement of sanctions on those involved in malpractices in public expenditure management practices, while persistent efforts are made to implement recommendations of Auditor General’s reports on DAs expenditures management practices.


1979 ◽  
Vol 87 ◽  
pp. 13-24

The overall pattern of changes in real expenditure and output was markedly different in 1978 from that of 1977 (see chart 1). In 1977, largely because of the undertakings given in the Letter of Intent to the IMF of December 1976, fiscal policy was deliberately restrictive. The stance of fiscal policy was made harsher still by the public expenditure shortfall produced by the operation of the relatively unfamiliar cash limits. There was a fairly small fall in public authorities' current spending and much larger falls in capital expenditures. Private consumption, too, fell as stages II and III of the pay policy operated. Trade to 6 per cent of the labour force. Retail price inflation did, however, fall fractionally from 16.5 per cent in 1976 to 15.9 per cent in 1977 (and to 13 per cent through the year).


1982 ◽  
Vol 2 (1) ◽  
pp. 31-51 ◽  
Author(s):  
P. Arestis ◽  
E. Karakitsos

ABSTRACTAn important issue in the discussion of fiscal policy is the contention that the public sector could expand only at the expense of the private sector, which must contract to provide the necessary room. This paper is concerned with ‘financial’ crowding out, which relates to the financing of public expenditure, rather than resource crowding out, which relates to the size of public expenditure. The paper attempts to determine empirically, using the National Institute of Economic and Social Research (NIESR) macroeconomic model of the UK economy, whether fiscal actions under different modes of finance affect some strategic economic variables. The paper utilises techniques of optimal control, which are considered superior to simulation. The main conclusion of the paper is that there is no significant crowding out in the NIESR model; it is, nevertheless, important to distinguish between money-financed and bond-financed increases in government expenditure.


1980 ◽  
Vol 5 (4) ◽  
pp. 615
Author(s):  
Michael J. O'Connell ◽  
Richard Clarke

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