IMPLEMENTATION OF FISCAL DECENTRALIZATION IN INDONESIA: 2001-2009

In Indonesia, the implementation of fiscal decentralization has entered the 9th year, however, so far many problems and obstacles which is faced during the implementation to stimulate economic growth and reduce poverty. This study aims to analyze: trend of government expenditure in decentralization era and regional autonomy during 2001-2009 and fiscal decentralization degree in Indonesia. This objective is achieved through descriptive analysis using secondary data for 2001-2009. The result shows central government expenditure tends to decreased and transfer expenditure increased significantly every year in absolutely, but annual growth rate fluctuated considerably. This indicates the allocation portion of the transfers was unstable. The largest component of transfers is fund balance and tends to increase every year significantly, fiscal decentralization degree at districts/city and province increased in 2007-2008. It is recommended to regional government to allocate public interest bigger than for government administration such as personnel government spending.

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ANALISIS PERKEMBANGAN KEMAMPUAN KEUANGAN DAERAH DALAM MENDUKUNG PELAKSANAAN OTONOMI DAERAH PADA DINAS PENDAPATAN DAERAH KOTA TIDORE

GOING CONCERN : JURNAL RISET AKUNTANSI ◽

10.32400/gc.13.03.20018.2018 ◽

2018 ◽

Vol 13 (04) ◽

Author(s):

Umilhair Alting ◽

Winston Pontoh ◽

I Gede Suwetja

Keyword(s):

Local Government ◽

Regional Development ◽

Central Government ◽

Fiscal Decentralization ◽

Regional Government ◽

Financial Capability ◽

Growth Ratio ◽

Regional Autonomy ◽

New Beginning ◽

The People

Fiscal decentralization is one the major component of the decentralization implementation of regional autonomy. As the new beginning in regional development and the people in managing the resources or all of the potential to the prosperity and the progress of region. Financial aspect is one of the basic criteria to find out the real capability regional government in managing their autonomy system (household system) the capability of regional government in managing their financial can be seen in APBD which describes the capability of local government in financing the activities of development task and equity in each region. The purpose of this research is to determine the financial capability of Tidore in regional autonomy especially in 2013-2017 judging by ratio of independency, decentralization fiscal degree, growth ratio. This research used observation, interview and documentation to collect the data. The data was analyzed using qualitative and quantitative data with described analysis. The result showed that the independence ratio of Tidore has been able to improve its financial capability. The degree of decentralization is still highly dependent on the central government, although it has been increasing year by year. Growth rate fluctuated this indicates the local government of Tidore is not too concerned with regional development and community welfare.Keywords: regional autonomy, ratio of independency, The degree of decentralization ratio, Growth ratio.

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Analisis Hubungan Kemandirian Keuangan Daerah dan Ketergantungan Daerah Terhadap Pengangguran dan Kemiskinan

Economics Development Analysis Journal ◽

10.15294/edaj.v5i2.22035 ◽

2018 ◽

Vol 5 (2) ◽

pp. 217-225

Author(s):

Rosyafa Febiandani ◽

Deky Aji Suseno

Keyword(s):

Local Governments ◽

Central Government ◽

Fiscal Decentralization ◽

Secondary Data ◽

Direct Relation ◽

Regional Autonomy ◽

Local Revenue ◽

Central Java ◽

Relationship Of ◽

The Relationship

Adanya desentralisasi fiskal diharapkan dapat menciptakan kemandirian daerah dan dapat mengurangi ketergantungan pemerintah daerah terhadap pemerintah pusat. Kemandirian keuangan daerah dicerminkan dengan perbandingan besarnya PAD terhadap total pendapatan daerah. Sejak 10 tahun dilaksanakannya otonomi daerah sesuai UU No 32 Tahun 2004, kemandirian keuangan daerah di Provinsi Jawa Tengah masih berada di level yang kurang baik dibandingkan dengan provinsi lainnya di Pulau Jawa. Jumlah pengangguran dan jumlah penduduk miskin di Provinsi Jawa Tengah juga masih terhitung tinggi. Penelitian ini bertujuan untuk mengetahui hubungan dari tingkat kemandirian keuangan daerah dan tingkat ketergantungan daerah terhadap tingkat pengangguran dan tingkat kemiskinan di kabupaten/kota Provinsi Jawa Tengah Tahun 2013. Data yang digunakan dalam penelitian ini adalah data sekunder. Metode analisis yang digunakan adalah Analisis Korelasi Kanonikal menggunakan bantuan program SPSS. Hasil penelitian menunjukkan kemandirian keuangan daerah mempunyi hubungan yang signifikan, kuat, dan tidak searah dengan pengangguran dan kemiskinan. Sedangkan hubungan antara ketergantungan daerah terhadap kemiskinan dan pengangguran mempunyai hubungan yang signifikan, tidak kuat, dan tidak searah. Peningkatan kemandirian keuangan daerah guna mengurangi tingkat ketergantungan terhadap pemerintah pusat dapat dilakukan dengan cara menggali dan mengelola sumber daya atau potensi daerah yang dimilikinya secara efektif dan efisien sebagai sumber utama pendapatan keuangan daerahnya. Fiscal decentralization is expected to create independency regional financial and to reduce the dependence of local governments to the central government. Independency regional financial can be result by the ratio of PAD to total local revenue. Since 10 years the implementation of regional autonomy based on UU No. 32 of 2004, independency regional financial in Central Java is still unwell compared to the other provinces in Java. As well as unemployed, and the poverty in Central Java is still high. The purpose of this research is to determine the relationship of independency regional financial and the dependency regional to unemployment and poverty in Central Java period 2013. The data used in this research is secondary data. The method of analysis used is the Canonical Correlation Analysis using SPSS application. The results of research showed that the relationship of independency regional financial are significant, strong, and no direct relation with unemployment and poverty The relationship between dependency regional with unemployment and poverty are significant, no strong, and no direct relation. Increased the independency local financial to reduce the dependence on the central government can be done by managing the resources or the potential of region effectively and efficiently as the source from their financial local revenue

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Dampak Desentralisasi Fiskal terhadap Perekonomian Antar Daerah : Analisa Model IRIO

Jurnal Ekonomi dan Pembangunan Indonesia ◽

10.21002/jepi.v3i2.28 ◽

2003 ◽

Vol 3 (2) ◽

pp. 50-71

Author(s):

Nurkholis Nurkholis ◽

Bambang P.S. Brodjonegoro

Keyword(s):

Natural Resources ◽

Central Government ◽

Fiscal Decentralization ◽

Government Expenditure ◽

Regional Government ◽

Block Grants ◽

Current Formulation ◽

Decentralization Policy ◽

Tax Sharing ◽

The Impact

Regional autonomy program is the form of fiscal decentralization policy in Indonesia, legally started with the law of Regional Government No.22/1999 about de-concentration azas, which imply power or authority sharing and No.25/1999 about decentralization, which imply financial sharing between central and regional government. Financial sharing is tax and natural resources sharing revenue. This financial sharing type can widen fiscal gap between regions. As the solution, the central government gives block grants. Interregional Input-Output (IRIO) model can be used to analyze the impact of fiscal decentralization policy on sectoral and regional linkages, multipliers, growth, equalization, and efficiency of the regional economy. The analysis use shock variables of inter-governmental transfer including tax sharing revenue, natural resources revenue and block grants. They are treated as an exogenous variable package by regional government expenditure. The expenditures are in the form of investment and consumption based on IRIO model to analyze the optimality of policy variation. The analysis shows that the optimality of growth, equalization, and economic efficiency will be reached if the allocation of inter-governmental transfer is exactly the same as the potency and linkages between sectors and regions. We find the current formulation of intergovernmental transfer by central government, potent to increase regional disparity. Central government should reformulate division of inter-governmental transfer to avoid fiscal decentralization to be contra productive policy.

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Comparison the Autonomic Regional Financial Performance in Southeast Sulawesi Province

Economics Development Analysis Journal ◽

10.15294/edaj.v9i2.38288 ◽

2020 ◽

Vol 9 (2) ◽

pp. 180-189

Author(s):

Tajuddin Tajuddin ◽

Ilyas Ilyas

Keyword(s):

Financial Performance ◽

Central Government ◽

Fiscal Decentralization ◽

Secondary Data ◽

Research Problem ◽

Ratio Analysis ◽

Regional Autonomy ◽

Income Sources ◽

Better Than

The consequence of the implementation of regional autonomy is that the regions must have their own abilities to implement government affairs and regional development. There is some research on the financial performance of the area but is still done in a partial autonomic region only. This research compares the financial performance between the autonomic regions of the expansion and the parent area. Based on this, study aims to compare the financial performance of the parent regency and the expanded district. In this study financial performance is measured based on Regional Financial Independence (KKD) rastio, Fiscal Decentralization Degree (DDF) ratio and the Regional Financial Effectiveness Ratio (EKD). Overall, secondary data are used, namely the realization of Regional Original Revenues (PAD), PAD targets, Balancing Funds, Loan Funds, and Regional Expenditures. To answer the research problem, the data is processed using ratio analysis. The results showed that the Regional Financial Performance measured by the ratio of KKD and DDF in the parent regency was still higher than the KKD and DDF in the expanded districts. Both the parent district and the expanded districts of KKD and DDF are included in the Instructive category. The role of the central government is still very dominant in regional financing. In general, the expanded district EKD ratio was very effective while the parent district EKD ratio was generally included in the quite effective category. The financial performance of the regional results is better than the parent region due to the existence of autonomous regions to promote maximum income sources.

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The effects of government expenditure on sustainable economic growth in India: assessment of the circular economy

Industria Textila ◽

10.35530/it.072.01.1791 ◽

2021 ◽

Vol 72 (01) ◽

pp. 74-80

Author(s):

SMITHA NAYAK ◽

VARUN S.G. KUMAR ◽

SUHAN MENDON ◽

RAMONA BIRAU ◽

CRISTI SPULBAR ◽

...

Keyword(s):

Economic Growth ◽

Social Services ◽

Government Spending ◽

Central Government ◽

Negative Impact ◽

Positive Impact ◽

Government Expenditure ◽

Secondary Data ◽

Online Data ◽

The Government

Government expenditure is linked to the economic growth and is the driving force of the every country. In the post liberalization era, India has been exposed to the dynamics of the world economy due to which India has witnessed a significant impact of Government spending on its economic growth. The objective of this paper is to investigate the effects of the Central Government spending on the growth of the Indian economy over a period, from 2006 to 2016. The online data disclosures of the various ministries have been the major source of secondary data. Co-integration analysis is adopted to evaluate the effect of individual sectorial spending on the economic growth and gross domestic product. The economic spending is classified into 5 sectors namely: General Services, Social Services, Economic Services, Grants in Aid & Contribution and Public debt & Loans for analysis, as disclosed by the sources. The analysis gives us an idea of the various sectors which have a positive impact and the sectors which have a negative impact. The results would play an instrumental role in exploring the sectors in which the government should invest more, thereby contributing to an enhancement in the country’s growth.

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Regional Financial Performance Before and After The Regional Autonomy in Special Region of Yogyakarta

Telaah Bisnis ◽

10.35917/tb.v19i1.159 ◽

2020 ◽

Vol 19 (1) ◽

Author(s):

Djoko Susanto ◽

Rudy Badrudin ◽

Nuri Marlia

Keyword(s):

Local Government ◽

Financial Performance ◽

Local Governments ◽

Fiscal Decentralization ◽

Secondary Data ◽

Regional Government ◽

Regional Autonomy ◽

Before And After ◽

Financial Balance ◽

Special Region

Abstract The purpose of this study to examines and analyze differences the financial performance of local governments before and after decentralization. Through regional autonomy, local government has the authority to explore the role of the allocation of income and perform independently in setting development priorities. It is based on Law No. 23/2014 on Regional Government and Law No. 33/2004 on Financial Balance between Central and Local Government. The sample in this study were all districts in Special Region of Yogyakarta (DIY) in the period of 1994 to 2015. The sample used is districts in DIY namely Bantul, Gunungkidul, Kulon Progo, Sleman Regency, and Yogyakarta City. Data used in this research is secondary data. Data analysis using Paired Sample T - Test. These results indicate that there is no difference of fiscal decentralization degrees in districts in DIY before and after regional autonomy; there is no difference of regional financial independence ratio in districts in DIY before and after regional autonomy; and there is differences of regional financial in harmony ratio in districts in DIY before and after regional autonomy.

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The Impact of Fiscal Decentralization Policy on the Sustainability of Regional Development

ENDLESS : International Journal of Future Studies ◽

10.54783/endless.v3i2.62 ◽

2021 ◽

Vol 3 (2) ◽

pp. 97-106

Author(s):

Rahmat Salam

Keyword(s):

Central Government ◽

Fiscal Decentralization ◽

Capital Expenditure ◽

Regional Growth ◽

Regional Government ◽

Infrastructure Development ◽

Regional Autonomy ◽

Reform Period ◽

Decentralization Policy ◽

The Impact

Fiscal decentralization is a critical component of the concept of regional autonomy that has been embraced since the Reform period. With fiscal decentralization, it is envisioned that every regional government can impose development in its territory. However, the fiscal decentralization strategy in the field cannot be applied in all areas owing to political concerns. Then, each local authority has had solid financial potential since 2001 since it got very high transfer funds from the central government, but the allowance for growth was minimal. E.g., there are still many roads that are destroyed. This may be attributed to the fact that much of the transfer funds from the central government are reserved towards staff spending. The purpose of this analysis is to provide a general overview of the impact on the stabilization of regional growth of the fiscal decentralization policy in effect since 2001. For literature review, this study uses a qualitative approach. The study shows, however, that the fiscal decentralization policy has not affected all growth sectors because much of the Central Government allocation funds continue to be used for regular spending and salary payments such that capital expenditure funding, including infrastructure development funding, is modest and even budget-free.

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ANALISIS KAUSALITAS PERTUMBUHAN EKONOMI, PENGELUARAN PEMERINTAH DAN KUALITAS SUMBERDAYA MANUSIA DI PROVINSI SUMATERA BARAT

Jurnal Kajian Ekonomi dan Pembangunan ◽

10.24036/jkep.v1i1.5354 ◽

2019 ◽

Vol 1 (1) ◽

pp. 97

Author(s):

Hanifa Novela ◽

Hasdi Aimon

Keyword(s):

Economic Growth ◽

Human Resources ◽

Government Spending ◽

Descriptive Analysis ◽

Government Expenditure ◽

Secondary Data ◽

Literature Study ◽

Causality Test ◽

Inductive Analysis

This study aims to analyze the causal relationship between economic growth, government expenditure and the quality of human resources in West Sumatra. This type of research is descriptive and associative research, where the data used is secondary data in the form of panel data from 2010 to 2017 with the technique of collecting documentation data and literature study obtained from related institutions and institutions. The data analysis used is the data used is descriptive analysis and inductive analysis. In inductive analysis there are several tests, namely: (1) Unit Root Test (2)Cointegration Test (3) Optimal Lag Determination (4) Granger Causality Test (5) PVAR Test. The results of this study indicate that (1) economic growth and government expenditure have a one-way relationship where economic growth affects government spending while government spending does not affect economic growth (2) economic growth and quality of resources humans have a one-way relationship where economic growth affects the quality of human resources and the quality of human resources does not affect economic growth (3) government expenditure and the quality of human resources do not have one-way or two-way relationships ( causality) where government spending does not affect the quality of human resources as well as the quality of human resources does not affect government spending during the study period

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Influence of Tax, Unemployment and Political Instability to Indonesia Government Expenditures 1988-2016 Period

International Journal of Engineering & Technology ◽

10.14419/ijet.v7i4.34.23897 ◽

2018 ◽

Vol 7 (4.34) ◽

pp. 235

Author(s):

Sugiartiningsih . ◽

Hesty Juny ◽

Ignatius Oki ◽

Tria Apriliana ◽

Muhammad Ali

Keyword(s):

High School ◽

Junior High School ◽

Government Spending ◽

Political Instability ◽

Descriptive Analysis ◽

Government Expenditure ◽

Negative Relationship ◽

Secondary Data ◽

Indonesian Government ◽

The Government

This study aims to determine the effect of taxes, unemployment and political instability on Indonesian government spending. The research method used in this study is descriptive analysis method because it is to find out the third causal relationship of independent variables on Indonesian government expenditure. The model is built multiple regression with secondary data boundaries from 1988 to 2016. Based on the results of calculations, the results of a positive relationship between tax and political instability of Indonesian government expenditure are obtained. While, unemployment has a negative relationship to Indonesian government spending. The main factor is the condition of Indonesian unemployment is high, starting from junior high school, vocational high school and even university level. While the government is trying to overcome it, it has not been optimally because of the obstacles in the village and in the city. On the contrary, tax and strong political instability after the reform of Indonesian government spending.

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Studi Komparatif Kinerja Keuangan Daerah Induk dan Daerah Pemekaran (Kabupaten/Kota di Provinsi Jambi)

J-MAS (Jurnal Manajemen dan Sains) ◽

10.33087/jmas.v5i2.203 ◽

2020 ◽

Vol 5 (2) ◽

pp. 323

Author(s):

Endah Tri Kurniasih ◽

Etik Winarni ◽

Ahmad Soleh

Keyword(s):

Local Governments ◽

Central Government ◽

Fiscal Decentralization ◽

Secondary Data ◽

Service Performance ◽

Research Needs ◽

Regional Autonomy ◽

Capacity Model ◽

Finance Development ◽

Alternative Sources

Based on Law No. 33/2004 on the transfer of power from the central government to the local government in managing, collecting and managing the source of receipt in accordance with the potential and conditions of their respective regions or seized by fiscal decentralization. In order to realize this goal, local governments are allowed to carry out regional expansion. The purpose of the expansion is to optimize services to the community in light of the growing population development. To improve service performance, it is certainly required to have sufficient financial capabilities. In order to ensure the implementation of the implementation, the financial capabilities of each region are required, but regional autonomy often creates fiscal gaps and becomes a burden on the central government as a result of the inability to finance development carried out by local governments. Therefore, efforts are needed to improve and find alternative sources of new admissions taking into account the conditions and potential that exist in each area. On the basis of the problem, this research needs to be carried out to see if the implementation of regional autonomy has been effectively carried out in accordance with the objective of regional autonomy which is to achieve fiscal independence. The objectives of this study are (1) analyzing the financial capabilities of the expansion area and the parent region (2) analyzing how the new and parent districts receive efforts in the implementation of fiscal maturity. The data used in this study is secondary data of danalm bentum time series in the period 2009-2017 sourced from Dispenda, BPS and related agencies from 11 districts / cities in Jambi Province. Analysis of data used by nature of this study with models of fiscal decentralization degrees (FDD), Regional Spending Performance and Regional Financial Retdor. While to measure tax efforts used the Tax Ratio and Tax Capacity model.

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