Public Expenditure Analysis in Aceh
The World Bank has been closely involved in the analysis of regional public expenditures in Aceh and Nias. Its in depth assessment published in 2006, and updated in 2008 Aceh Public Expenditure Analysis Update 2008 offers a better understanding of Aceh's revenues, expenditures and fiscal management at the district and provincial levels, and also analyses central government funds spent in the region. It contains a detailed analysis of resource allocation versus outcomes for key sectors of public service delivery (health, education and infrastructure).Aceh’s fiscal resources have increased dramatically after decentralization and the Special Autonomy Status (2001 and 2002). The amount managed directly by the Acehnese province and local governments increased several-fold from Rp 2.4 trillion in 1999 to Rp 11.2 trillion in 2006 (constant prices 2006). In 2008, Aceh will receive additional revenue from the special autonomy fund to the amount of Rp 3.5 trillion, and the provincial government alone is expected to manage Rp 8 trillion, which is double the 2007 budget of Rp 4 trillion. If Aceh is to achieve its long-term development goals it is essential that the local governments of Aceh manage their finances effectively. Effective financial management is all the more important in Aceh given the additional funding local governments will receive through the increased special autonomy allocation.
Public Expenditure Analysis in NiasÂ
The island group of Nias has registered consistently lower development outcomes than both provincial and national averages. Now, more than two years after the disasters and despite the significant progress that has undoubtedly been made, some troubling trends are starting to emerge, of which this report takes stock. In particular, funds are not being disbursed at the desired pace, with the reconstruction effort suffering serious delays. Although there seem to be sufficient funds for the reconstruction of the island, there are still worrying geographical and sectoral gaps in the reconstruction process, creating unnecessary imbalances. Also, the two district governments are not as deeply involved in the reconstruction process as they should be, jeopardizing the longer-term sustainability of the work being undertaken. A World Bank study released in 2007, Nias Public Expenditure Analysis 2007: Managing Resources to Build Back and Create a Better Future for Nias suggests that low levels of public spending have contributed to below average development outcomes for Nias's population of 720,000.For more information and analysis on public expenditures across Indonesia, visit the World Bank’s online analysis at www.worldbank.org/id/publicexpenditure
Public Financial ManagementÂ
The World Bank has conducted a detailed survey of Public Financial Management (PFM) capacity in all 21 districts and city administrations in Aceh and Nias as the first step of a nation-wide survey into PFM capacity as well as the Aceh provincial administration. Nine key aspects of PFM capacity are assessed using a detailed measurement framework. The results show a wide divergence between governments, with scores ranging from 15 percent (very poor) to 69 percent (good). More importantly, the results show in which areas of PFM individual local governments are performing poorly and where efforts need to be focused to raise performance.The results have been disseminated to local governments throughout Aceh and to partner organizations and now is the time for local governments to actively seek ways to enhance capacity. To find out more about PFM in other districts around Indonesia, click here
- Public Financial Management in Aceh:
Measuring Financial Management Performance in Aceh’s Local Governments
- Aceh Public Expenditure Analysis:
Spending for Reconstruction and Poverty Reduction
- Nias Public Expenditure Analysis 2007:
Managing Resources to Build Back and Create a Better Future for Nias
- Aceh Public Expenditure Analysis Update 2008:
Managing Resources for Better Outcomes In A Special Autonomy Region
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