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Balanced finance of the central and regional governments in the implementation of regional autonomy in bali province

Author: 
Komang Pradnyana Sudibya and I Nyoman Suyatna
Subject Area: 
Social Sciences and Humanities
Abstract: 

The matters on authority regulated underthe Law of the Republic of Indonesia No. 23 of 2014 on Regional Government and the distribution of regional taxes and levies under the Law of the Republic of Indonesia No. 28 of 2009 on Regional Taxes and Regional Leviesare the right of the Regency/City Government. It leads to a strong gap in the Original Regional Revenue (”ORR”) which causes inequality of development between regions and distribution of public welfare. This research aims to find out the amount ofthe balanced finance of central-regional governments and ORR as well as which of those has the bigger amount in terms of financing the regional government implementation in the Regencies/City in Bali Province. This research employs normative legal research by using primary, secondary, and tertiary legal materials which are analyzed by usingthe qualitatively normative tool with statutory and conceptual approaches. The results show that, in terms of revenue inequality, the central government has an instrument through the balanced finance of the central-regional governments whichaims in overcoming both the vertical and horizontal gaps. From the revenue structure, it is noted that the revenue of the balanced finance of the central-regional governments is bigger than the ORR. This indicates that the regions still depend on the central and the balance fund formula is a hope for the Regencies/City in Bali.

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