Decentralized Fiscal Governance and Efforts for Poverty Reduction in Aceh, Indonesia
Keywords:
Fiscal Governance, Asymmetric Decentralization, Poverty ReductionAbstract
Aceh’s special autonomy in Indonesia is a promising case for decentralized fiscal governance, which emerged as a result of asymmetric decentralization in 2008. We assessed the framework for fiscal governance of the special autonomy fund, which is particularly important considering the difficulty in accelerating poverty reduction. There has also been interest in reviewing its evolution over time and analyzing its effectiveness in the quest for poverty reduction. This study draws on data from a questionnaire survey comprising government planners and parliament members from 23 districts/cities in Aceh. Based on the ordinary data gathered through a questionnaire survey engaging 117 respondents, we analyze the perceptions of city/municipality governments on two models of fiscal governance (FG) of special autonomy funds for poverty reduction; FG model#1 and FG model#2. Then, the semi-structured interviews were conducted to supplement data and validate the findings. The results show that FG model#2 is preferred for the quest for poverty reduction. With greater authority over the management of special autonomy funds, FG model#2 can better accommodate and create breakthroughs for fiscal governance to be more effective for pro-poor program implementation. This study represents an empirical contribution to a neglected topic of decentralized fiscal governance in the context of poverty reduction.
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