scholarly journals Impact of Fiscal Decentralisation on Economic Growth and Poverty Reduction in Aceh Province, Indonesia

Author(s):  
Iqbal Firdaus ◽  
Nunung Nuryartono ◽  
Raul Barreto

This study analyses the impact of fiscal decentralisation policy on economic development and poverty reduction. It focuses on the practice of intergovernmental fiscal transfer and on special autonomy policy in Aceh province, Indonesia, using data from 23 districts gathered from 2008 to 2018. Undertaking a panel data analysis, it will analyse the impact of intergovernmental fiscal transfer from central to local government on local government expenditure. The impact of local government expenditures and fiscal decentralisation practices on local gross domestic product (GDP) and poverty is also measured. The results show that several intergovernmental fiscal transfer policies in Aceh positively enhance the local expenditure. Further, the local government spending and fiscal decentralisation practices in Aceh improve the local GDP and reduce poverty levels in the region.

2021 ◽  
Vol 37 (1) ◽  
Author(s):  
Sri Suartini

Bengkulu Province is one of the regions in Indonesia that are still dealing with a high poverty rate. Various efforts made by the local government in addressing the problem of poverty have not yet met optimal results, despite the implementation of regional autonomy and fiscal decentralization nowadays. The research aimed to analyze the impact of the local expenditure quality on poverty reduction of regencies and municipality in Bengkulu Province. The analysis method used panel data analysis, which involved data of 10 regencies and municipality from 2015 to 2018. The result showed that the local expenditure quality of regencies and municipality in Bengkulu Province was less influential on the poverty rate. Lacking the alignment of local governments in poverty alleviation programs, so the poverty rate was difficult to reduce. It needs synergy and synchronization of policies with integrated various other fields or sectors, encourage increased entrepreneurial capacity and community empowerment.


2017 ◽  
Vol 3 (1) ◽  
pp. 39-46
Author(s):  
Mariam Abbas Soharwardi ◽  
Hina Ali ◽  
Mujahid Ali

Purpose: In developing countries foreign lending becomes a problem now a day instead of spend this lending for the development purposes. Ultimately this problem causes poverty in these countries where usage of foreign lending is not in proper ways. The purpose of this study is to investigate the impact of IMF and World Bank lending on poverty in Pakistan, India and Bhutan. In this study corruption, GDP, unemployment, secondary enrolment, and external debt are used as independent variables and poverty headcount ratio as dependent variable. Study finds out the relationship of corruption, unemployment and external debts with poverty and showing the positive relationship while secondary enrolment and GDP showing negative relation with poverty. Moreover study finds out that lending of IMF and WORLD BANK mostly causes poverty in these developing countries instead of reducing poverty because of corrupt government's weak policies for the distribution of loans. It is examined that the countries with strong policies and non-corrupt government can take full advantage of these lending for poverty reduction. But it is noticed that the countries which are the members of IMF structural adjustment programs are facing more poverty problems as compare to those countries which are not involved in these programs or even have less numbers of lending. Those countries are much better than the countries involve in structural adjustment programs.


2021 ◽  
Vol 29 ((S2)) ◽  
pp. 199-219
Author(s):  
Mohd. Din ◽  
M. Nur

The purpose of this article is to determine the factors that hinder the implementation of the whipping sentence under Aceh’s Jinayah Qanun and the efforts made in overcoming these obstacles.  The method used is empirical juridical, using data from the field as the main source. This is done by collecting data from several regions in Aceh, followed by interviews with the prosecutors as the executor in Sharia Court for the Jinayah case. The results show that the execution is the final stage of the judicial process and is expected to achieve the objectives of justice, but there are some cases of jinayah which are not fully executed due to some obstacles that arose. The main obstacles are lack of funding, human resources, and coordination among subsystems in the jinayah justice. The lack of funding will result in delays in implementing whipping punishment so that when it is carried out, it is difficult to bring the convicted person into prison. The efforts made to overcome this problem are by carrying out whipping with minimum funding, developing human resources, and coordinating with the local government to support this execution process. 


2020 ◽  
Vol 18 (2) ◽  
pp. 1-14
Author(s):  
Deni Setiawan ◽  
Khalida Ulfa ◽  
Titin Purwaningsih

Special autonomy as one of the strategies in overcoming social welfare issues is one of them in Aceh Province. The implementation of regional autonomy after the reforms marked by the issuance of Law Number 33 of 2004 concerning the financial balance between the central government to the regions. The hope is to make the regions more autonomous or independent in government, and a more equal financial structure and the right to manage financial resources that are more transparent. This research focuses on the impact of the implementation of special autonomy in Aceh Province, limited from 2015 to 2019 in poverty alleviation efforts. This study uses a qualitative method with a descriptive approach to literature study and statistical data analysis. Data analysis techniques in this study were using statistical data analysis obtained from BPS. The results showed that special autonomy as an effort to reduce poverty in Aceh has a very good contribution because it has reduced poverty in Aceh from 819 thousand in March 2019 to 810 thousand people in September 2019. And the use of the special autonomy fund was channeled through programs made by the Aceh government in the fields of Education, Health, and the economy.


MODUS ◽  
2016 ◽  
Vol 28 (2) ◽  
pp. 185
Author(s):  
Syukriy Abdullah ◽  
Afrah Junita

This paper examines the effect of own revenues to expenditures and the effect ofbudget ratcheting as moderating variable in local government budgets. Using data from23 (twenty three) districts/cities in Aceh we find the own revenues have effect on localexpenditure and budget ratcheting may moderate the relationship between the ownrevenues and local expenditure.Keywords: Aceh agency problems, budgeting, budget ratcheting, city, fiscaldecentralization, local expenditure, local government, own revenue, regency.


Author(s):  
Namratha Birudaraju ◽  
Adiraju Prasanth Rao ◽  
Sathiyamoorthi V.

The main steps for agricultural practices include preparation of soil, sowing, adding manure, irrigation, harvesting, and storage. For this, one needs to develop modern tools and technologies that can improve production efficiency, product quality, schedule and monitoring the crops, fertilizer spraying, planting, which helps the farmers choose the suitable crop. Efficient techniques are used to analyze huge amount of data which provide real time information about emerging trends. Facilities like fertilizer requirement notifications, predictions on wind directions, satellite-based monitoring are sources of data. Analytics can be used to enable farmers to make decisions based on data. This chapter provides a review of existing work to study the impact of big data on the analysis of agriculture. Analytics creates many chances in the field of agriculture towards smart farming by using hardware, software. The emerging ability to use analytic methods for development promise to transform farming sector to facilitate the poverty reduction which helps to deal with humane crises and conflicts.


2021 ◽  
Author(s):  
Rajesh Barik ◽  
Sanjaya Kumar Lenka

Abstract The paper tries to analyzes the effect of financial inclusion on poverty reduction among 28 Indian states and rural-urban as well. Using data from 28 Indian states over the period of 1993 to 2015, this study constructed a single financial inclusion index through Principal Component Analysis (PCA) method, which signifies the state-wise variation in financial inclusion services. Furthermore, this study uses Fixed Effect, Random Effect, Panel Corrected Standard Errors, Feasible General Least Square, and Hausman-Taylor Regression model to know the impact of financial inclusion on state-wise poverty reduction and rural-urban poverty reduction as well. The results of this study suggest that financial inclusion has a negative and significant effect on state-wise and rural-urban poverty reduction respectively. With regards to the control variables, this study finds that variables like social sector expenditure, per capita state GDP and capital receipt are negatively associated with all three categories of poverty (i.e., overall poverty and rural-urban poverty) whereas the rural population is positively associated.


2017 ◽  
Vol 2 (4) ◽  
pp. 51-62
Author(s):  
Puspita Ayuningtyas Prawesti ◽  
Bambang Supriyono

Objective - This study attempts to provide comprehensive findings on the impact of several kinds of infrastructural developments and government budgets on specific purposes, as well as agricultural and non-agricultural productions, on poverty alleviation in Indonesia between 2002-2013. Methodology/Technique - This study uses macroeconomic data at a municipal level to provide more precise findings when comparing provincial and national level data. The study uses an adaptation of the theory of international development. Findings - This research shows that electricity and sanitation are more effective at eradicating poverty than water infrastructure. In addition, household access to infrastructure is more effective in combatting poverty than the government budget for infrastructure development. The study also performs correlation matrices, dividing the data into the western and eastern parts of Indonesia, to provide more robust findings. Agricultural production is more effective in the western part of Indonesia, yet non-agricultural production is more relevant towards poverty reduction in the eastern part of Indonesia. Novelty - This study yields some empirical results and conclusions for economic development in Indonesia, finding that the key problem lies in the effectiveness of budget arrangement within the framework of fiscal decentralization. Type of Paper: Empirical. Keywords: Infrastructure Development; Fiscal Decentralization; Government Expenditure; Poverty Rate; Poverty Reduction. JEL Classification: H54, P30, P36.


Author(s):  
Subba Reddy Yarram ◽  
Brian Dollery ◽  
Carolyn-Dung Thi Thanh Tran

In common with higher tiers of government worldwide, Australian state governments often adopt highly interventionist ‘one-size-fits-all’ policies aimed at improving local government efficiency and performance. In this article, we employ recent expenditure data to investigate empirically the short-term impacts of rate capping on municipal expenditure in the Australian state of Victoria and to explore whether it had differential effects on spending by different types of local authorities. We find that while total spending did not fall, budgets for ‘invisible’ services, like aged care and disabled services, did decline. Our analysis also shows that the impact of rate capping on the various types of municipal expenditures is uneven between the different categories of local authority. Our findings add to the existing literature on local government finance by demonstrating that the impact of rate capping varies according to different expenditure types classified by local council categories in a non-linear population framework.


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