American Journal of Humanities and Social Sciences Research (AJHSSR)
2018
American Journal of Humanities and Social Sciences Research (AJHSSR) e-ISSN : 2378-703X Volume-02, Issue-07, pp-20-24 www.ajhssr.com
Research Paper
Open Access
Budget Behavior and Corruption: An Manifestation of Political Economy in Indonesia Edy Suandi Hamid Economic Development, Universitas Islam Indonesia, Indonesia.
ABSTRACT: The purpose of this study is to describe the behavior as one form of political economy in Indonesia. The study further analyzes the potential for budgetary behavior associated with corruption. The analysis basically focuses on analytical descriptive analysis. Using such methods, it can provide information about the relationship between political economy, budgetary behavior, and relations with corruption in Indonesia. The conclusion of the study is that the Indonesian economy is strongly influenced by political circumstances and forces. With the current budgeting system, the Indonesian economy will always be at great risk to abuse of power and corruption. KEYWORDS : political economy, budget behavior, corruption I. INTRODUCTION Since independence, Indonesia has a different tendency in embracing the economic system. Such trends certainly have an impact on the character formation of the Indonesian economy. In accordance with the existing history, the characters are different for each era (Hamid, 2017). With an egalitarian character and executive heavy, the New Order government has such strong political and economic power. The legislative role is then like only a formality. The executive power that was so great during the New Order era disappeared during the reform era. The shift that precedes the democratic euphoria further diverts the power to the legislature (legislative heavy). The situation is certainly a big impact on the political and economic Indonesia. One enormous economic impact is the legislative power in determining and overseeing the budget. The situation occurs from the central government level to the local government. The government often faces difficulties in discussing the Draft State Budget (RAPBN) and Draft Regional Budget (RAPBD). The difficulty is mainly about the conclusions of the RAPBN and RAPBD contents. Sometimes the determination is done at a time very close to the current year. Another major change is the mechanism of the decentralization process. Decentralization over the last few decades is an important and crucial topic for developing countries, including Indonesia (Hadiz, 2004, p. 697). Although Indonesia's economic substance is shaped by the same elements as those of a mixed economy, the facts are that there are always inseparable aspects. The development of decentralization today makes the direction of budgeting more and more mixed with politics. The process of budgeting both at the national and regional levels becomes more stringent and complex. The strength of politics through the legislative power certainly brings another risk, namely the possibility of transactional politics. There is a possibility in which the legislature incorporates the interests of the faction in the preparation of the budget. This of course will result in the community either directly or indirectly. Not only that, such political economy can also lead to greater corruption opportunities. Closely related to the economy with politics, especially budget issues. It is therefore very important to describe the political economy and budget behavior that exist in Indonesia.
II. LITERATURE STUDY Since changing direction towards decentralization, which form the political economy of Indonesia also change. The direction of development seeks to be manipulated through improved health, education and employment. Although decentralization is the best option that Indonesia has, it does not mean the decentralization does not pose a potential problem. Goldsmith in 1997 conducted a study entitled Economic Rights and Government in Developing Countries: Cross-National Evidence on Growth and Development. In his research, Goldsmith revealed that economic democracy greatly affects the prosperity of the people. Decentralization has no relationship to the index of economic freedom.
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