Abstract

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.

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