Abstract
Since 2011, regional autonomy has been resulting in formation of new local governments. This phenomenon leads to the increase of fiscal transfer from central government to the new local governments, including the Bangka Belitung and Gorontalo provinces. This research focused on the implementation of fiscal decentralization policy upon the two new provinces and the management of the fiscal transfer in their own budgets. Finding discloses that the fiscal transfer plays important role to add fiscal capacity and cover the increase of budget expenses for every single fiscal year. Furthermore, both provinces still depend much on fiscal transfer due to the rise of expenditure where revenues could not cover overall budget.
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