Legal Reform Government Finance in the Management in Indonesia

Abstract

In the perspective of regulation, some basic things that needs attention is that the policy principles of financial balance, the basic local government funding, the source of local revenue, local revenue, the fund balance, miscellaneous revenue, borrowing, financial management in the context of decentralization, deconcentration funds, support funds, financial information systems area, as well as transitional provisions, must obtain a more serious concern. On the application of the dimensions of the Financial Balance between the Government and the Regional Government is a subsystem of the State Treasury as a consequence of the division of tasks between the Government and Local Government showed inconsistencies with the provision of financial resources of the state to the regional government in the implementation of decentralization. It is certainly a negative impact, because it is only based on the transfer of duty by the Government to the Local Government with regard stability and fiscal balance. Local finance should be managed in an orderly, obedient to laws and regulations, efficient, economical, effective, transparent and accountable with regard to fairness, decency, and the benefits to society. Keywords:State Financial Regulation,Relations Regional Center,Financial Decentralization