Reframing Public Budgeting in Indonesia: The Urgency of Risk-Based and SDG-Integrated Approaches to Ecological Disasters
Keywords:
Risk-based budgeting, Sustainable Development Goals, Development Governance, Public Sector Accounting, Fiscal Resilience, Ecological DisastersAbstract
Study’s aims: This study justifies the urgency of transforming regional public budgeting (APBD) in Indonesia from an incremental, compliance-oriented model to a risk-based budgeting framework integrated with the Sustainable Development Goals (SDGs). It conceptualizes ecological risk as fiscal risk within decentralized public financial management. Design/Methodology/Approach: The study employs a conceptual framework that integrates risk governance and the SDGs into regional public budgeting (APBD), reframing ecological risk as fiscal risk and embedding it across the budget cycle to enhance fiscal resilience and sustainability in decentralized governance contexts. Findings: The analysis reveals that conventional budgeting systems inadequately internalize ecological and social risks, leading to reactive emergency spending and fiscal instability. The proposed risk-based budgeting model embeds risk identification, fiscal risk assessment, SDG alignment, preventive allocation, and risk-informed accountability into the regional budget process, thereby strengthening fiscal resilience and sustainability. Theoretical contribution/Originality: This study extends the public sector accounting literature by repositioning budgeting as a risk-governance mechanism and by integrating the SDGs into subnational fiscal management frameworks. Limitation/Implication: As a conceptual study, the framework requires future empirical validation to assess its practical implementation and measurable impact on fiscal resilience.
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