IMPLEMENTASI TRANSFER DANA PERIMBANGAN DAN IMPLIKASINYA

Abstract

Fiscal decentralisation through the financial balance between the central and local government has applied since the local autonomy is passed. The law implementing that policy has been amended for the sake of bridging  the gap of development between the poorly  and the rich resources endowed-local government such as the Province of East Kalimantan.  In the implementation of fiscal decentralisation  policy through the channeling of the fiscal scheme such as general allocation fund (DAU), specific allocation fund (DAK) and resources compensation fund (DBH) or transfer fund, the Province is one of the local governments accepting the biggest portion of the financial balance fund drawn from forestry and mining sectors. However, such a biggest portion has not so far given the impact to the social welfare as indicated by a moderate economic growth, low income per capita, the number of poor people, the unemployment rate, and relatively poor public services. This situation is even worse due to the blowing up of the misused public budget cases.