IMF Working Papers

Intergovernmental Grants Systems and Management: Applications of a General Framework to Indonesia

By Bob Searle, Jun Ma, Stefano Piperno, Ehtisham Ahmad

August 1, 2002

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Bob Searle, Jun Ma, Stefano Piperno, and Ehtisham Ahmad. Intergovernmental Grants Systems and Management: Applications of a General Framework to Indonesia, (USA: International Monetary Fund, 2002) accessed September 17, 2024
Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

Intergovernmental equalization grants have been described as “the glue that holds a nation together.” Getting the grants system right is critical to countries as they decentralize. This paper illustrates general principles with an example based on Indonesia in 2000. A general grant should be used to supplement own revenues and to finance local service provision where there are no central mandates. The special needs of backward regions would be better provided for by specific grants. Specific grants need to be taken into account in the general grants scheme.

Subject: Education, Expenditure, Health, Population and demographics, Total expenditures

Keywords: Africa, Equalization Grants, Expenditure need, Fiscal Decentralization, Governance law, Government administration, Indonesia, Recipient government, Revenue capacity, Tax rate, Total expenditures, WP

Publication Details

  • Pages:

    33

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 2002/128

  • Stock No:

    WPIEA1282002

  • ISBN:

    9781451855067

  • ISSN:

    1018-5941

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