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Intergovernmental Grants Systems and Management: Applications of a General Framework to IndonesiaEhtisham AhmadInternational Monetary Fund (IMF) Jun MaWorld Bank Bob SearleGovernment of the Commonwealth of Australia - Commonwealth Grants Commission Stefano Pipernoaffiliation not provided to SSRN August 2002 IMF Working Paper No. 02/128 Abstract: Intergovernmental equalization grants have been described as the glue that holds a nation together. Getting the grants system right is critical to countries as they decentralize. This paper illustrates general principles with an example based on Indonesia in 2000. A general grant should be used to supplement own revenues and to finance local service provision where there are no central mandates. The special needs of backward regions would be better provided for by specific grants. Specific grants need to be taken into account in the general grants scheme.
Number of Pages in PDF File: 31 Keywords: Indonesia, Fiscal Decentralization, Equalization Grants JEL Classification: H7 working papers seriesDate posted: February 2, 2006Suggested CitationContact Information
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