Political Budget Cycles in Indonesian Municipalities

RIZKIAH, FARAH (2017) Political Budget Cycles in Indonesian Municipalities. Other thesis, Universitas Sebelas Maret.

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    Abstract

    There is a common perception that incumbents often try to use economic policy to increase their re-election chances. This study aims to examine the presence of politically induced and electorally motivated economic policy in local government budget. The study focuses on 451 districts and municipalities in Indonesia which held direct local elections over the period 2010-2014. We examine the presence of pre-electoral manipulation through the behaviour of budget balance, total expenditures, investment expenditures, and other administrative expenditures including donations, social assistance, and financial assistance expenditure during election year. According to the result, we find evidence of opportunistically motivated fiscal policies in Indonesia municipalities in the budget balance, total expenditures, donation expenditures, and financial assistance expenditures. We also find evidence that suggest that regional political alignment and tenure (years as mayors) might have effect on the fiscal policy, especially budget balance and total expenditures. On different note, we do not find the same effect of political induced cycles in investment expenditures and social assistance.

    Item Type: Thesis (Other)
    Subjects: H Social Sciences > HF Commerce > HF5601 Accounting
    Divisions: Fakultas Ekonomi > Akuntansi
    Depositing User: Mujahidah Showafah
    Date Deposited: 08 Apr 2017 16:50
    Last Modified: 08 Apr 2017 16:50
    URI: https://eprints.uns.ac.id/id/eprint/33407

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