Strengthening Fiscal Transfers in Indonesia Using an Output-Based Approach

Strengthening Fiscal Transfers in Indonesia Using an Output-Based Approach

In 2010 the World Bank approved a US$220 million loan for a Local Government and Decentralization project in Indonesia. The project aims to improve the accountability and reporting of the central government's Specific Purpose Grants (DAK). Pi...

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Bibliographic Details
Main Authors: Ellis, Peter, Mandri-Perrott, Cledan, Tineo, Luis
Format: Brief
Language:English
Published: World Bank, Washington, DC 2012
Subjects:
ACCOUNTABILITY
BASIC SERVICES
BUDGETING
COMMUNITIES
DECENTRALIZATION
DEVELOPING COUNTRIES
DISBURSEMENT
DISBURSEMENTS
EXPENDITURE
EXPENDITURES
FINANCIAL INCENTIVES
FINANCIAL MANAGEMENT
FISCAL DECENTRALIZATION
GOVERNMENT EXPENDITURES
INFRASTRUCTURE SERVICES
INTERGOVERNMENTAL TRANSFERS
INVESTMENT LOAN
INVESTMENT RISK
INVESTMENT RISKS
LAWS
LOAN
LOAN PROCEEDS
LOCAL GOVERNMENT
LOCAL GOVERNMENTS
PERFORMANCE RISK
PERFORMANCE RISKS
PROCUREMENT
PROCUREMENT LAW
PUBLIC EXPENDITURE
PUBLIC INVESTMENT
ROADS
SANITATION
SUPERVISORY BOARD
TELECOMMUNICATIONS
TRANSPARENCY
URBAN DEVELOPMENT
WASTE
WATER SUPPLY
Online Access:http://documents.worldbank.org/curated/en/2011/01/13707977/strengthening-fiscal-transfers-indonesia-using-output-based-approach
http://hdl.handle.net/10986/10905
Description
Summary:In 2010 the World Bank approved a US$220 million loan for a Local Government and Decentralization project in Indonesia. The project aims to improve the accountability and reporting of the central government's Specific Purpose Grants (DAK). Piloted in four infrastructure sub-sectors-irrigation, roads, sanitation, and water the project is the World Bank's first to apply innovative Output-Based Aid (OBA) design principles on a large scale to target improvements in inter-governmental fiscal transfers. Under the project, the DAK grants will work in a similar way to OBA subsidies, which reimburse service providers for independently verified, pre-agreed physical outputs. Up to 81 local governments in five provinces are eligible to take part in this project. This note presents an overview of the project objectives and design.

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