Public Expenditure Management in Indonesia: Islamic Economic Review on State Budget 2017

14 Pages Posted: 13 Jun 2018

See all articles by Aan Jaelani

Aan Jaelani

IAIN Syekh Nurjati Cirebon (State Islamic Institute Syekh Nurjati Cirebon)

Date Written: May 25, 2018

Abstract

This paper discusses the management of public expenditures in Indonesia in State Budget 2017. The data collected from fiscal policy documents, especially about government spending plans in 2017, and then be reviewed by policy analysis, the theory of public expenditures, and the theory of public goods, and compared with the theory of public expenditure in Islamic economics. Public expenditure management in Indonesia has implemented a distribution system that divided public expenditure for central government expenditures, transfers to the regions, and the village fund. In terms of fiscal policy, public expenditure priorities to support the achievement of sustainable economic growth, job creation, poverty reduction, and the reduction of gaps in the welfare of the whole community. In Islamic economics, public expenditure is used to meet the needs of the community based on the principles of general interest derived from the shari'a. Public expenditure on Indonesia's government as an effective tool to divert economic resources and increase the income of society as a whole, and focused on the embodiment of the people's welfare.

Keywords: state budget, fiscal policy, public expenditure, Islamic Economic

JEL Classification: E62, H11, H41, H5, 023, P5

Suggested Citation

Jaelani, Aan, Public Expenditure Management in Indonesia: Islamic Economic Review on State Budget 2017 (May 25, 2018). Available at SSRN: https://ssrn.com/abstract=3185800 or http://dx.doi.org/10.2139/ssrn.3185800

Aan Jaelani (Contact Author)

IAIN Syekh Nurjati Cirebon (State Islamic Institute Syekh Nurjati Cirebon) ( email )

Jl. Perjuangan By Pass
Sunyaragi
Cirebon, West Java 45132
Indonesia
0231-481264 (Phone)
0231-489926 (Fax)

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