Although local government in 2000 executed almost 40% of investment from the state budget, it was primarily a budget line distribution to the provincial level government to carry out central government policy (World Bank, 2012). The State Budget Law 2002 advanced fiscal decentralisation by assigning more authoritative responsibilities to provincial government and by guaranteeing revenue sources to commune governments. This provides a large amount of discretion to the provincial government to adapt to their specific conditions, but less so for sub-provincial level governments (Bjornstad, 2009).