Reconstructing Local Representatives Budgeting Function: Development Planning and Budgeting in Decentralized Indonesia

Abstract

Several empirical studies reveal inconsistencies in planning and budgeting in many regions in Indonesia. Despite being the cause of inconsistencies, the budgetary authority of the local representative is unlikely to be abolished. It is reflected in the work of the local representatives in the area of budget allocation. The research is a normative legal research and supported by statutory and conceptual approaches; it is a reform-oriented research. The results show that the essence of the budget function of local representatives is supervision. Through this function, the local representatives supervise the determination of sources of regional revenue and expenditure in one year. It is carried out by discussing and approving or disapproving the draft proposed by the regional head. The local representative is still referred to as a controlling agency for regional budgeting and expenditure (control of budget). It is intended for the regional budget can truly be an instrument to realize community welfare through planning. Currently, the mechanism of budget discussion is long and complicated, making it difficult for local governments to maintain the consistency of plans in the budgeting process. The mechanism of discussion must be reconstructed in its concept as a way to maintain the consistency of budgeting decisions with planning.

Keywords: Budgeting; Decentralization; Local Government; Local Representatives

DOI: 10.7176/JLPG/98-27

Publication date:June 30th 2020