Financial Planning on Economic Development and Implementation of Budget Use at Political Decision in Indonesia

Abstract

This study takes the focus on planning the preparation of local financial budget from the perspective of economic aspects. From here, it can be determined the amount of fund allocation for each sector of superior and sector that have the potential to be improved. The goal is that with the allocation of budget allocation according to regional potential, the economy in Jakarta Indonesia Region can give multiplier effects to other sectors, which in turn can improve the regional economy and public service. The problem in this research is looking at the finances of an area of course derived from the Regional Budget (RB) concerned. From this RB can be seen the position of revenue and expenditure area which is a source of financing all regional development activities as well as describe the ability of regions in mobilizing the financial potential. The results show that the development performance of the Government in Jakarta Indonesia for 25 years from 1992-2016 should be based on the management of productive economic resources and have advantages based on the financial capacity of the region through the source of Regional Original Revenue (ROR), the current state of the budget use in government in Jakarta Indonesia has not focused on its economic base. Whereas the potential of ROR is very sufficient, therefore the regional economic development planning in Jakarta Indonesia should be arranged effectively and directed, in order to provide a positive reward for the revenue sector. Regional economic development efforts face various opposition from inside and outside. This situation requires the ability and government policy in Jakarta Indonesia to make the process of accelerating the preparation and implementation of economic development that focus on the economic base.

Keywords: Financial Planning, Regional Economics, Expenditure, Location Quotient,

JEL CLASSIFICATION CODES: H5, H6, O1, O2