The policy of decentralisation has been implemented in Indonesia since the 1st of January 2001, in order to change the formulations of funds allocation from the central government to provincial governments in Indonesia. This thesis examines the formulations of funds allocation in terms of a provincial budget from the Central Government to East Kalimantan province during centralisation and decentralisation periods and analyses the impact of East Kalimantan province's provincial budget and decentralisation on the province's economic growth and human development