Structure or posture of the state budget expenditure of Indonesia is not ideal it is just a business as usual. The results of the evaluation during the years 2005-2011 most of the state budget is spent for routine expenditures primarily for subsidies (28 1%) and expenditure (18 37%) as well as interest payments on debt (15 63%) and shopping goods (11 63%). Other crucial issues found during the study are including (i) the pattern of absorption is low and not proportional (ii) the state budget only in favor of developed areas rather than lagging regions (iii) formulation of the transfer of funds does not stimulate local economic growth areas and (iv) fiscal space is very limited. As a result the state budget contribution to economic growth is very small only about 2 9% or Rp. 226 2 trillion. Even an increase in regional spending especially DAU (General Allocation Fund) and DAK ( Special Allocation Fund) had little impact on the GDP growth unemployment and poverty reduction in the evaluated regions.