Abstract

This research aims at analyzing the local government policy related to the local budget posture in the each territorial. There are uncertainty methods in dividing and formulating the local budget posture in each territorial in Indonesia. It is not depend on the actual economic variables of each territorial. This study uses the literature studies to collect the data of planning and budgeting. The content analysis of this local government economic policy is based on of the planning and budgeting process itself. The detailed information is found by observations and in-depth interview with the informants about the planning and budgeting process in Rembang. The result shows the variables that can determine the fair instrument in formulating the local budget posture some of which are: the number of population, the number of drop out (DO), the illiteracy (IR), the infant mortality rate (IMR), the malnutrition data, the number of poor (HCI), the economic growth, the damaged road infrastructure, the damaged irrigation system, the damaged schools, the land building tax, and the amount of retribution.

Highlights

  • The implementation of the local planning and budgeting as stipulated in the Acts No 17 of 2003 on Regional Finance and the Acts No 25 of 2004 on National Development Planning System, mandates and carries two (2) main missions in it

  • Some problems in the implementation of the local planning and budgeting have been identified by the Ministry of Internal Affairs and the World Bank, among others are: the lack of synchronization of the local development programs as outlined in the local development planning documents with the priority program or the national interest, the amount of the budget spent each year has not reflected yet the steps leading to indicators of achievement of development goals, and it still needs further attention on the application system of the local planning and budgeting that is in favor of the poor and the qualified public services

  • In connection with the mechanism, the choice of comprehensive planning is to achieve the participatory planning process in determining the people’s necessity and it is substantial to the types of necessity that are really needed by the people, so that the mechanism of bottomup and top-down planning is the aggregate process of the joint decision results that must be consistently obeyed and used as the foundation in the sustainable local development process

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Summary

Introduction

The implementation of the local planning and budgeting as stipulated in the Acts No 17 of 2003 on Regional Finance and the Acts No 25 of 2004 on National Development Planning System, mandates and carries two (2) main missions in it. First is the creation of implementation of development at the participatory local level. Second is the equalization of development throughout the region by optimizing the ability, initiative, creativity, initiation and participation of people, and the ability to reduce the dominance of the local government in implementing the development with the principles of good governance. In connection with the mechanism, the choice of comprehensive planning (combination of planning technocracy and democracy) is to achieve the participatory planning process in determining the people’s necessity and it is substantial to the types of necessity that are really needed by the people, so that the mechanism of bottomup and top-down planning is the aggregate process of the joint decision results that must be consistently obeyed and used as the foundation in the sustainable local development process

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