Application of green budgeting in finance and development policy

Climate change and extreme weather have negative impacts on human life. Efforts are needed to prevent environmental damage. In the Indonesian economy, there is a Green Growth Program, which is a program to realize economic growth that can reduce poverty and ensure social inclusion, environmental sustainability, and resource efficiency. One of the programs is green budgeting which consists of actions and fiscal policy to prevent environmental problems. This study focuses on the relationship between green budgeting and financial and development policies, it aims to see how the proportion of the budget is set on finance and development. This study uses a quantitative approach by employing descriptive analysis. Green budgeting has been implemented in Indonesia, but it is facing various problems. At the local level, the government does not understand green budgeting. There is also a lack of data for formulating the next green budgeting policy. Lack of government commitment causes the budget for environmental management not as a priority. This causes the limited local government budget (APBD) allocated. Limited budget constraints have to be overcome by finding other sources, for example, prepare of sustainable programs or environmental approach.