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

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...

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Bibliographic Details
Main Author: Searle, Bob
Other Authors: Ma, Jun, Piperno, Stefano, Ahmad, Ehtisham
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2002
Series:IMF Working Papers
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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653 |a Population & demography 
653 |a Health 
653 |a Total expenditures 
653 |a Demographic Economics: General 
653 |a Public finance & taxation 
653 |a National Government Expenditures and Related Policies: General 
653 |a Health economics 
653 |a Education 
653 |a Population and demographics 
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520 |a 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