scholarly journals The Impacts of Fiscal Decentralization, Institutional Transformation, and Regional Revenue on Income Disparities between Provinces in Indonesia

2018 ◽  
Vol 20 (3) ◽  
Author(s):  
Yohanes Maria Vianey Mudayen ◽  
Herry Maridjo
Keyword(s):  
Income Distribution ◽  
Natural Resources ◽  
Fiscal Decentralization ◽  
Linear Regression Analysis ◽  
Revenue Sharing ◽  
Institutional Transformation ◽  
Tax Revenue ◽  
Income Disparity ◽  
Allocation Mechanism ◽  
Local Revenue

This study aims to determine the impacts of fiscal decentralization, institutional transformation, and regional revenue to the income disparity among the provinces in Indonesia. This study uses panel data with the number of runs 528 pieces of data that includes 33 provinces in Indonesia period 2000-2015. The data were taken from the Central Bureau of Statistics (BPS) and Bank Indonesia. They were analyzed using a multiple linear regression analysis. The results show that tax revenue sharing fund and natural resources revenue sharing fund impact positive and significant on the income disparity among the provinces in Indonesia, while the general allocation fund, special allocation fund, institutional transformation, and the local revenue do not significantly affect the income disparity among the provinces in Indonesia. Tax and natural resources revenue sharing fund are actually exacerbating the gap of income distribution among regions in Indonesia. The implication of this study is that the government needs to review the allocation mechanism of General Allocation Fund, Special Allocation Fund, Tax Revenue Sharing Fund and Natural Resources Revenue Sharing Fund in order to serve as an instrument of fiscal capacity equalization of each region as well income distribution equalization among regions in Indonesia. The local government needs to continue improving the local revenue through the optimization of local tax revenue, regional retribution, profits of Regional Owned Enterprises, and other legitimate acceptances.

scholarly journals FISCAL INSTITUTIONS AND THE SIZE AND INTER-REGIONAL DISTRIBUTION OF PUBLIC REDISTRIBUTION

2018 ◽  
Vol 37 (1) ◽  
Author(s):  
Raul A Ponce-Rodriguez ◽  
Juan Medina-Guirado
Keyword(s):  
Fiscal Decentralization ◽  
Regional Distribution ◽  
Revenue Sharing ◽  
Tax Revenue ◽  
Fiscal Institutions ◽  
National Budget ◽  
Public Transfers ◽  
The Government ◽  
The Impact ◽  
Redistribute Income

Abstract Fiscal institutions, which are responsible for the delegation of tax and spending powers among different tiers of governments, are important determinants of the size and efficiency of public redistribution. In this paper we develop a comparative analysis of the impact of fiscal decentralization vis-à-vis tax revenue sharing on the government’s effort to redistribute income. The main findings are: first, the size of the national budget for public redistribution is the same under fiscal decentralization and tax revenue sharing. Second, different fiscal institutions lead to different regional distributions of public transfers. Third, when choosing between decentralization and tax revenue sharing, there is a tradeoff between the efficiency and the regional effort of the government to redistribute income. Resumen Las instituciones fiscales, que determinan la responsabilidad del diseño de impuestos y gasto entre los diferentes niveles de gobierno, son importantes determinantes del tamaño y eficiencia de la redistribución pública. En este artículo, se desarrolla un análisis comparativo del impacto en el esfuerzo del gobierno en redistribuir el ingreso, entre la descentralización fiscal en y una política de compartir el ingreso fiscal. Los principales resultados son: primero, el tamaño del presupuesto en redistribución es el mismo para una economía con descentralización o en la que se comparte el ingreso fiscal. Segundo, las instituciones fiscales implican una asignación diferente en la distribución regional de transferencias públicas. Tercero, al escoger entre descentralización y el compartir el ingreso fiscal, existe un intercambio entre la eficiencia y la distribución regional de las transferencias públicas.

Redistribution of Regional Incomes within the Framework of the System of Interbudgetary Relations in Russia

2003 ◽  
pp. 77-93 ◽  
Author(s):  
P. Kadochnikov ◽  
S. Sinelnikov-Murylev ◽  
I. Trunin ◽  
S. Chetverikov
Keyword(s):  
Resource Allocation ◽  
Income Distribution ◽  
Revenue Sharing ◽  
Tax Revenue ◽  
Present System ◽  
Intergovernmental Transfers ◽  
Regional Income ◽  
Actual Impact ◽  
Regional Budgets ◽  
Different Levels

The authors analyze the equalization properties of the present system of resource allocation among budgets of different levels in Russia (allocation of tax revenue and intergovernmental transfers). They consider the actual impact of the following federal fiscal instruments on the regional income distribution: the system of intergovernmental transfers, the system of federal tax revenue sharing between federal and regional budgets and the federal net tax on the region.

scholarly journals Dampak Desentralisasi Fiskal di Indonesia terhadap Pertumbuhan Ekonomi dan Disparitas Antar Daerah: Analisa Model Makro Ekonometrik Simultan

2003 ◽  
Vol 4 (1) ◽  
pp. 17-38 ◽  
Author(s):  
Teguh Dartanto ◽  
Bambang P.S. Brodjonegoro
Keyword(s):  
Economic Growth ◽  
Natural Resources ◽  
Natural Resource ◽  
Central Government ◽  
Fiscal Decentralization ◽  
Revenue Sharing ◽  
High Rate ◽  
Block Grant ◽  
Transfer Scheme ◽  
Tax Sharing

From January 1, 2001, when new autonomy laws were implemented, lndonesia began to move toward decentralization of what had been a highly decentralized. This policy adopts two complimentary laws. Law No.22/1999, which basically the devolution policy, has been accompanied by La No.25/1999, which basically reflect that decentralization policy in Indonesia has adopted the concept of ”money follows function”. Law No.25/1999 describe the fiscal decentralization process that will create a new intergovernmental transfer scheme between the central government and local government. Some of items in the law were really new ones such as the natural resources revenue sharing, income tax sharing, general allocation fund (OAF) and specifics allocation fund (SAF). The policies oftax and natural resource revenue sharing can result in fiscal imbalance among regions. Tax and natural resources revenue sharing will benefit only to urbanized and natural resources rich regions Because of it, Central Government created General Allocation Funds. This fund has block grant characteristic and will be given to regions by fiscal gap conception. The purpose is to equalize fiscal capacity among regions that in turn also can reduce disparity among them. The Simultaneous Macro Econometric Model is made for analyzing the fiscal decentralization impact to economic growth and region disparity. The policy simulation in this model used transfer fund from central government such as Tax Revenue Sharing, Natural Resource Revenue Sharing and General Allocation Fund. The simulation is carried out to see the optimality of various possible existing policies. The optimality is measured by evaluating the high rate of economic growth and low disparity.

scholarly journals Flypaper Effect Analysis on Local Government Budgets in Indonesia

2020 ◽  
Vol 5 (4) ◽  
Author(s):  
Dina Syahrina ◽  
Ermawati .
Keyword(s):  
Local Government ◽  
Linear Regression Analysis ◽  
Sampling Technique ◽  
Revenue Sharing ◽  
Flypaper Effect ◽  
Government Budget ◽  
Effect Analysis ◽  
Local Revenue ◽  
Local Government Budget ◽  
Positive Effect

This study aims to identify the effect of Local Own-Source Revenue, General Allocation Fund, Special Allocation Fund, Revenue Sharing Fund, Other Lawful Local Revenue, towards the Local Government Budget, as well as conduct the flypaper effect analysis. The object of this research is Districts/Cities in Indonesia. The samples used in this study consist of 472 Districts/Cities in Indonesia in the year 2018. The sampling technique used was the purposive sampling method with previously set criteria. The data used in this study is secondary data that originates from Local Government Financial Reports that are published by the Audit Board of the Republic of Indonesia. The hypothesis testing used in this study is the double linear regression analysis, using SPSS program version 20 with a significance rate of 5%. The result of this study partially shows that Local Own-Source Revenue has a positive effect towards the Local Government Budget with a significance rate of 0,000, General Allocation Fund has a positive effect towards the Local Government Budget with a significance rate of  0,000, Special Allocation Fund has a positive effect towards the Local Government Budget with a significance rate of  0,000, Revenue Sharing Fund has a positive effect towards the Local Government Budget with a significance rate of  0,000, and Other Lawful Local Revenue has a positive effect towards the Local Government Budget with a significance rate of  0,000. The result of this study found the phenomenon of the flypaper effect towards Local Government Budget from the General Allocation Fund, while it was not found from the Special Allocation Fund and Revenue Sharing Fund.

scholarly journals Analysis of Effectiveness and Contribution of Advertisement Tax Collection on Original Regional Income

2020 ◽  
Vol 4 (3) ◽  
pp. 338-346
Author(s):  
Ayi Astuti
Keyword(s):  
Linear Regression Analysis ◽  
Correlation Coefficients ◽  
Secondary Data ◽  
Coefficient Of Determination ◽  
Tax Revenue ◽  
Simple Linear Regression ◽  
Tax Collection ◽  
Local Revenue ◽  
The City ◽  
Test Correlation

Advertisement tax is one of the potential regional revenues and can be collected efficiently, effectively and economically. Efforts to increase PAD can be done by increasing the effectiveness of local tax revenue from PAD sources especially advertisement tax. This research of advertisement tax collection on PAD in Bandung City and to determine the contribution of the realization of advertisement tax revenue in an effort to increase the original income of the city of Bandung in 2013 and 2017. This research is a descriptive verification study with a quantitative approach. The data used are secondary data by type and time series during the period of 2013 to 2017. Data analysis was performed through correlation coefficients, simple linear regression analysis, coefficient of determination analysis and hypothesis testing (t test). Correlation coefficient analysis results show that the analysis of the effectiveness and contribution of advertisement tax has a significant effect on the Original Local Revenue at the Bandung City Tax Service.

scholarly journals Assessing Regional Finance Independence in Indonesian Local Governments

2020 ◽  
Vol 5 (1) ◽  
Author(s):  
Ermawati Ermawati ◽  
Khoirul Aswar
Keyword(s):  
Local Governments ◽  
Capital Expenditure ◽  
Linear Regression Analysis ◽  
Secondary Data ◽  
Revenue Sharing ◽  
Multiple Linear Regression Analysis ◽  
Tax Revenue ◽  
Regional Finance ◽  
Central Java ◽  
The Republic

This study aims to identify the effects of local tax, tax revenue sharing, special allocation fund, and capital expenditure on the regional finance independence in Indonesia’s local governments.  This study uses all districts/cities within the Central Java as a sample. The sample identification uses the purposive sampling method. Secondary data used in this study originates from the report of examination of the local government financial report and the summary of examination published per semester by the national audit board of the Republic of Indonesia. A total of 161 samples were retrieved, resulting in a total of 175 samples. The hypothesis testing was done using the multiple linear regression analysis method. The results of this research show that local tax, tax revenue sharing revenue, has a significant relationship on the regional finance independence in Indonesia’s local governments. While, allocational fund and capital expenditure does not have a relationship on the regional finance independence in Indonesia’s local governments.

scholarly journals Analisis Potensi Pajak Daerah Sebagai Sumber Pendapatan Asli Daerah di Kabupaten Tanjung Jabung Barat

2018 ◽  
Vol 18 (3) ◽  
pp. 468
Author(s):  
Pantun Bukit ◽  
Hana Tamara Putri
Keyword(s):  
Data Analysis ◽  
Natural Resources ◽  
Local Governments ◽  
Tax Revenue ◽  
Research Subject ◽  
Analysis Method ◽  
Regional Finance ◽  
Local Revenue ◽  
Regression Approach ◽  
The Government

Tax areas as one of the components of the Original Local Revenue (PAD) which is given by the local Government to residents who stay in their jurisdiction without obtaining the consideration from the local governments that collect taxes area. Tanjung Jabung Barat District is one of the strategic areas and it has a potential of natural resources which is relatively large. The strategies and policies of financial development in Tanjung Jabung Barat is directed at the improvement of the effectiveness as well as the effectiveness of regional finance. One of the strategies is through the optimization of local tax receipts as a source of Original Local Revenue (PAD). This research aimed at investigating the magnitude of the potential and the local tax capacity in Tanjung Jabung Barat District of 2018. This research also intended to know the implementation of tax effort which has been attempted in Tanjung Jabung Barat District. Last, this research aimed at knowing the extent to which the original revenue dependency area toward the acceptance of tax areas in Tanjung Jabung Barat District.The data were collected through survey and direct observation to the research subject through the coordination with related agencies. In data analysis method, Diagrams Cartesius, Regression approach to Tax Business, Estimation and Elasticity Tax Formulas, analysis of Overlay and analysis of Potential local tax were used. The results of this research are expected to give input to the Government of Tanjung Jabung Barat in arranging the strategies and policies in optimizing the Local Tax Revenue.

Thin Capitalization, Transfer Pricing Aggresiveness, Penghindaran Pajak

2018 ◽  
Vol 2 (1) ◽  
pp. 1-28
Author(s):  
Teza Deasvery Falbo ◽  
Amrie Firmansyah
Keyword(s):  
Regression Analysis ◽  
Linear Regression ◽  
Stock Exchange ◽  
Transfer Pricing ◽  
Linear Regression Analysis ◽  
Tax Avoidance ◽  
Total Sample ◽  
Multiple Linear Regression Analysis ◽  
Tax Revenue ◽  
Thin Capitalization

The increase in tax revenue in Indonesia is not accompanied by an increase in tax ratio The low tax ratioindicatestax avoidance practices in Indonesia. Some tax avoidance practices can be conductedthrough transferpricing and thin capitalization.This study is aimed to examine empirically the effect of thin capitalization as well astransfer pricing aggressiveness on tax avoidance practice in Indonesia. This study uses manufacturing companieswhich are listed on Indonesia Stock Exchange (IDX) within the period 2013-2015. Using purposive sampling, theselected samples in this study are 90 companies, so the total sample is 270 samples. The hypothesis examinationused in this study is multiple linear regression analysis of panel data.The results of this study suggest that thincapitalization is positively associated with tax avoidance,while transfer pricing aggressivenessis not associated withtax avoidance.

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