Abstract: In theory, decentralization holds the promise of better provision of public goods and services that are adjusted to local needs and conditions because of the increased proximity between policy makers and their constituents. This proximity is reflected in the transfer of various public services to local governments, including those related to education. However, this study shows that the proportion of education expenditures budgeted by local government. does not significantly affect participation at the junior secondary level, a major component of achieving the nine-years compulsory education goal set by government. In addition, the share of the education in local government budgets is found to be strongly dependent on transfers from central government instead of being a function of the needs of local communities.

Keywords: Decentralization, Demand for Education, Share of The Education Budget, Junior High School Enrollment, Local Community Needs.