scholarly journals Are Disasters a Risk to Regional Fiscal Balance? Evidence from Indonesia

2021 ◽  
Author(s):  
Astrid Wiyanti ◽  
Alin Halimatussadiah
Keyword(s):  
Local Governments ◽  
Fixed Effects ◽  
Capital Expenditure ◽  
Financial Burden ◽  
Government Revenue ◽  
Consumption Expenditure ◽  
Adverse Impacts ◽  
Fiscal Balance ◽  
Disaster Severity ◽  
Post Disaster

AbstractIndonesia is an archipelago country and is fairly vulnerable to disasters. While disasters generally affect government revenue and expenditure, their effects likely vary by country. This study examines the effect of disasters on the fiscal balance, revenue, and expenditure of local governments. We used panel data and fixed effects methods to estimate the degree to which disaster severity influences budgetary solvency at the district and provincial levels in Indonesia between 2010 and 2018. This study revealed that disasters can strain fiscal balance at the district and provincial levels due to a decrease in own-source revenue and an increase in social assistance expenditure, capital expenditure, consumption expenditure, and unexpected expenditure. The district expenditure most threatened by disasters is consumption expenditure, while the provincial expenditure most threatened is unexpected expenditure. We also found that an increase in capital expenditure can lead to financial burden due to delays of planned projects or post-disaster reconstruction. Based on these findings, it is clear that some forms of insurance or other financing schemes are necessary to mitigate the adverse impacts of disasters on regional fiscal balance.

scholarly journals Partisipasi Masyarakat Memoderasi Pengaruh PAD, Dana Perimbangan, dan Belanja Modal Pada Kinerja Keuangan

2020 ◽  
Vol 30 (4) ◽  
pp. 1049
Author(s):  
Putu Venny Yunita ◽  
Ni Ketut Rasmini
Keyword(s):  
Local Government ◽  
Financial Performance ◽  
Community Participation ◽  
Local Governments ◽  
Capital Expenditure ◽  
Government Revenue ◽  
Regional Government ◽  
City Governments ◽  
Fiscal Balance ◽  
Sample Technique

The research aims to analyze the influence of local government revenue, fiscal balance funds, and capital expenditures on the financial performance of local governments with community participation as a moderating variable. The population in this study were all regency and city governments in Bali Province consisting of 8 regencies and 1 city with a period of 5 years from 2014 to 2018. The total population in this study was 45. The sample technique used was the saturated sample the analysis technique used is Moderated Regression Analysis (MRA). The results of the study showed that the local government revenue and capital expenditure had a positive effect on the financial performance of the regional government, while the fiscal balance fund had no effect on the financial performance of the regional government. Community participation strengthens the influence of local revenue, balance funds and capital expenditure on the financial performance of local governments. Keywords : Local Government Revenue; Fiscal Balance Fund; Capital Expenditure; Community Participation; Financial Performance.

The Role of Moderating Economic Growth Variables on the Effect of Allocation Funds and Capital Expenditures in Local Government

2021 ◽  
Vol 2 (3) ◽  
pp. 471-475
Author(s):  
Aris Eddy Sarwono ◽  
Dewi Saptantinah Puji Astuti
Keyword(s):  
Economic Growth ◽  
Local Governments ◽  
Capital Expenditure ◽  
Secondary Data ◽  
Capital Expenditures ◽  
Director General ◽  
Regional Government ◽  
Central Java ◽  
Fiscal Balance

This study aims to analyze the effect of the General Allocation Fund (DAU) and Special Allocation Fund (DAK) variables on capital expenditures. In addition, this study uses the role of intervening variables to analyze the effect of these variables. The data source for this research uses secondary data sources originating from the Director General of Fiscal Balance of the Regional Government. Respondents in this study were local governments in Central Java with a total of 35 regencies and cities for the period 2016-2019. The results of the analysis show that the DAU variable has a positive and significant effect on capital expenditure while the DAK variable has no significant effect on the modal expenditure variable. In addition, the results of the analysis also show that the variable Economic Growth (PE) is not a variable that mediates the effect of DAU on capital expenditure, while further analysis shows that PE is a variable that mediates the effect of DAK on capital expenditure.

scholarly journals Factors Affecting the Local Governments Financial Performance

2020 ◽  
Vol 12 (4(J)) ◽  
pp. 84-89
Author(s):  
Regita Oktaviani ◽  
Satria Yudhia Wijaya ◽  
Ermawati .
Keyword(s):  
Local Government ◽  
Financial Performance ◽  
Local Governments ◽  
Negative Impact ◽  
Capital Expenditure ◽  
Government Size ◽  
Linear Regression Method ◽  
Factors Affecting ◽  
Fiscal Balance ◽  
Relationship Of

This study aims to test and prove the relationship of local government financial performance with fiscal balance transfer, local own-source revenue, local government size, and capital expenditure. The study uses samples from District/City Local Governments in Sulawesi Island for the years 2016-2018. The samples were collected using the census sampling method, for a total of 243 samples in District/City Local Governments in Sulawesi Island. In this analysis, the hypothesis testing is performed using SPSS by the multiple linear regression method. The result of this study shows that fiscal balance transfer has a negative impact on the local government financial performance, local own-source revenue has an impact towards the local government financial performance, local government size does not have an effect towards the local government financial performance, and capital expenditure has an effect towards the local government financial performance. This study is expected to contribute to local governments by providing recommendations to improve the local government financial performance.

scholarly journals Do the Growth of Original Local Government Revenues and the Growth of Capital Expenditure Affect Fiscal Stress?

2020 ◽  
Vol 23 (1) ◽  
Author(s):  
Iqbal Lhutfi ◽  
Hamzah Ritchi ◽  
Ivan Yudianto
Keyword(s):  
Local Government ◽  
Local Governments ◽  
Capital Expenditure ◽  
Capital Expenditures ◽  
Fiscal Stress ◽  
Government Revenue ◽  
West Java ◽  
Fiscal Capacity ◽  
Negative Effect ◽  
Fiscal Pressure

This study aims to determine and analyze the effect of original local government revenue growth and local government capital expenditure growth on fiscal stress in regencies/municipalities in West Java Province. This study employed all 27 regencies/municipalities in West Java Province in 4 (four) periods from 2013 to 2016. This study used multiple regression analysis (panel data) and performed classical assumption tests. Because in the literature, no measurement meets the characteristics of local government budgets in Indonesia. The authors introduced a new approach by applying the fiscal capacity formula to measure fiscal stress. This study's results indicate that the growth in original local government revenue and the growth in local government capital expenditures simultaneously have a positive effect on fiscal stress in regencies/municipalities in West Java Province. The growth of local government revenue partially has a negative effect on fiscal stress in regencies and municipalities in West Java Province. The growth of capital expenditures partially has an insignificant effect on fiscal stress in regencies and municipalities in West Java Province. This research implies that the measurement of fiscal pressure is carried out using the fiscal capacity index as a new alternative that can be used by local governments to design policies.

scholarly journals Decentralization and Its Impact on Growth in India

2021 ◽  
Vol 16 (1) ◽  
pp. 130-151
Author(s):  
Fernanda Andrade de Xavier ◽  
Aparna P. Lolayekar ◽  
Pranab Mukhopadhyay
Keyword(s):  
Economic Growth ◽  
Capita Income ◽  
Fixed Effects ◽  
Capital Expenditure ◽  
Per Capita Income ◽  
Reverse Causality ◽  
Social Expenditure ◽  
Causality Test ◽  
Per Capita ◽  
National Growth

We study the effect of revenue decentralization (RD) and expenditure decentralization (ED) on sub-national growth in India from 1981–1982 to 2015–2016 for 14 large (non-special-category) states. Our study provides evidence that both RD and ED play a defining role in India’s sub-national growth in this three-and-a-half-decade period. We use a panel data model with fixed effects (FE) and Driscoll and Kraay standard errors that control for heteroscedasticity, autocorrelation and cross-sectional dependence. To test for causality between growth and decentralization, we use the Granger non-causality test. The regression analysis is supplemented with the distribution dynamics approach. We find that: (a) While decentralization Granger-caused economic growth, the reverse causality effect of growth on decentralization was not significant; (b) Economic growth increased significantly after liberalization; (c) Decentralization, capital expenditure and social expenditure had significant positive impacts on economic growth; and (d) States that had high levels of decentralization also had high levels of per capita income, while states that had low decentralization also exhibited low per capita income.

Determinants of Corporate Cash Holdings

2017 ◽  
Vol 18 (2) ◽  
pp. 416-427 ◽  
Author(s):  
Yogesh Maheshwari ◽  
K.T. Vigneswara Rao
Keyword(s):  
Panel Data ◽  
Fixed Effects ◽  
Capital Expenditure ◽  
Cash Holdings ◽  
Working Capital ◽  
Financial Policies ◽  
Panel Data Regression ◽  
Strong Positive Relationship ◽  
Development Expenditure ◽  
Corporate Cash Holdings

This article aims at examining the financial determinants of corporate cash holdings. The study employs panel data regression method. It uses the fixed-effects method based on Hausman test results for the estimation of panel data model. This study has implications that are beneficial for the business managers to have a better understanding and appreciation of the role and importance of the determinants of corporate cash holdings in formulating and evaluating the corporate financial policies. The results of the study indicate a strong positive relationship between cash holdings and cash flow, dividend payment, market-to-book ratio, net debt issuance and net equity issuance of the sample firms. It is also found that the cash holdings of these firms are negatively affected by net working capital, leverage, research and development expenditure as well as capital expenditure of the firm. The article will help researchers as well as managers to understand as to what motivates the firms to hold cash, given the fact that despite being often termed as a non-earning asset, firms generally hold more cash than their normal working capital requirement.

scholarly journals Pengaruh pendapatan asli daerah, dana alokasi umum dan dana alokasi khusus terhadap belanja modal pada kabupaten/kota di Provinsi Jambi

2019 ◽  
Vol 14 (1) ◽  
pp. 27-36
Author(s):  
Venny Tria Vanesha ◽  
Selamet Rahmadi ◽  
Parmadi Parmadi
Keyword(s):  
Panel Data ◽  
Regression Models ◽  
Capital Expenditure ◽  
Panel Data Regression ◽  
Data Regression ◽  
Directorate General ◽  
Fiscal Balance ◽  
Ministry Of Finance ◽  
The Republic

This study aims to analyze the development of Local Own-Source Revenue (PAD), General Allocation Fund (DAU), Spesific Allocation Fund (DAK), and capital expenditure as well as the influence of PAD, DAU and DAK on capital expenditure in districts/cities in Jambi Province. Data is sourced from the Directorate-General of Regional Fiscal Balance, the Ministry of Finance of the Republic of Indonesia. Data were analyzed using panel data regression models. The results of the study found that simultaneously PAD, DAU, DAK had a significant effect on capital expenditure. However, only partially the DAU influences the capital expenditure of districts/ cities in Jambi Province.

scholarly journals KINERJA KEUANGAN DAERAH PASCA PERALIHAN BEA PEROLEHAN HAK ATAS TANAH DAN BANGUNAN

2017 ◽  
Vol 5 (1) ◽  
pp. 1
Author(s):  
Juli Juli Juli
Keyword(s):  
Local Government ◽  
Financial Performance ◽  
Local Governments ◽  
Central Government ◽  
Capital Expenditure ◽  
Local Taxes ◽  
Paired Samples ◽  
Before And After ◽  
Operational Expenditure ◽  
Observation Period

This study examined differences in the local government's financial performance before and after the transition from central tax BPHTB be local taxes? In general, this study aims to determine the contribution BPHTB to the PAD as a source of funding for the survival of each region in order to achieve local autonomy system. The samples used in this study is the district/city that has existed since autonomy BPHTB not be treated as 114 cities/districts. The realization of the study observation period is the period before the transition budget BPHTB (Year 2010) and after the transition BPHTB (Year 2011). The research data were statistically tested with a different test of two paired samples. The results show that the performance of local government in Java have differences before and after the transition BPHTB from the central government to local governments. This research can provide empirical evidence of the differences in the financial performance of the post-transition region from the center to the regions BPHTB especially Java. The results of this study can also be used as a reference in future studies with similar themes to consider several things. First, the use of samples that are not confined to the local government but the entire Indonesian island of Java. Second, adding the growth rate ie performance measurement. Third, review the compatibility ratio because in addition to operational expenditure and capital expenditure is no longer heading in the budget expenditure is financing and transfer.     Keywords: Bea Perolehan Hak atas Tanah dan Bangunan, Financial Performance, Autonomous Region.

scholarly journals Pengaruh Pertumbuhan Ekonomi, Pendapatan Asli Daerah Terhadap Alokasi Belanja Modal Dengan Dana Alokasi Umum Sebagai Variabel Pemoderasi Pada Kabupaten/ Kota Di Provinsi Di Sumatera Utara

2020 ◽  
Vol 4 (1) ◽  
pp. 274-281
Author(s):  
Eka Sridawati Purba ◽  
Elsa Lorreinne Pradipta ◽  
Ruth Trifosa Taruli Manullang ◽  
Benny Rojeston Marnaek Nainggolan
Keyword(s):  
Economic Growth ◽  
Local Governments ◽  
Capital Expenditure ◽  
Secondary Data ◽  
Capital Expenditures ◽  
Moderating Variables ◽  
Local Revenue ◽  
Fixed Assets ◽  
North Sumatra ◽  
Regression Tests

The allocation of expenditure in the Regional Revenue and Expenditure Budget (APBD) in the form of capital expenditure aims to increase the fixed assets and the development of the region so as to create equitable development in each region, but the allocation of capital expenditure is not used productively by local governments, it can be seen from the imbalance of development between regions. The purpose of this study is to examine the effect of Economic Growth (PE), Regional Original Income (PAD) on the allocation of Capital Expenditure (BM) and General Allocation Funds (DAU) as moderating variables in Regencies / Cities in North Sumatra Province. The type of data used in this study is secondary data with multiple linear regression tests. The results of this study partially Economic Growth does not affect the allocation of Capital Expenditures, but Regional Original Revenue partially influences the allocation of Capital Expenditures. Simultaneously Economic Growth, Local Own Revenue and General Allocation Funds have positive and significant effect on capital expenditure. The General Allocation Fund moderates the effect of Economic Growth on the allocation of Capital Expenditures and the General Allocation Fund does not moderate the influence of the Local Revenue to the allocation of Capital Expenditures. Keywords: Economic Growth, Local Own Revenue, Capital Expenditures, General Allocation Funds

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