scholarly journals The Determinants of Level of Society Welfare Within Fiscal Decentralization Framework In Regional Autonomy Era

2020 ◽  
Vol 21 (2) ◽  
pp. 60-70
Author(s):  
Nuwun Priyono ◽  
Siti Arifah ◽  
Eva Wulandari ◽  
Panji Kusuma Prasetyanto
Keyword(s):  
Local Government ◽  
Time Series Data ◽  
Fiscal Decentralization ◽  
Government Expenditure ◽  
Balance Sheet ◽  
Significance Test ◽  
Profit Sharing ◽  
Series Data ◽  
Central Java ◽  
Local Government Expenditure

The purpose of this study is to prove to what extent the influence that fiscal decentralization, local financial performance, local government expenditure, Locally Generated Recurring Revenues or Pendapatan Asli Daerah (PAD), Profit-Sharing Fund or Dana Bagi Hasil (DBH), General Allocation Fund or Dana Alokasi Umum (DAU), and Special Allocation Fund or Dana Alokasi Khusus (DAK) have on the level of society welfare. The objects of this research are Regencies and Municipalities in Java Island. The data used in this study are the secondary. The data on balance sheet and realization report of the regional revenues and expenditure budget (APBD) are from the Ministry of Finance of the Republic of Indonesia. The data on the level of society welfare that is proxyed by the value of HDI is obtained from Bappenas and BPS of Central Java. This research uses time series data from 2012-2014 periods. The research method used is the research of causality with linear regression model. The result of the significance test shows that only one DAK variable can partially affect the HDI variable. Meanwhile those variables other than DAK partially or individually do not influence the HDI variable. The result of regression analysis shows that simultaneously such variables as Fiscal Decentralization, Regional Finance Performance, Local Government Expenditure, PAD, DAU, DAK and DBH have an influence on HDI in Regencies / Municipalities in Java Island.

An Investigation into the Intertemporal Spending Path of Local Government in Mauritius

2020 ◽  
Vol 14 (4) ◽  
pp. 432-453
Author(s):  
Sanju Naraidoo ◽  
Sanjeev K. Sobhee
Keyword(s):  
Local Government ◽  
Intertemporal Choice ◽  
Time Series Data ◽  
Government Expenditure ◽  
Jel Classification ◽  
Series Data ◽  
Middle Income ◽  
Long Run ◽  
Short Run ◽  
Local Government Expenditure

This article examines whether local government expenditure in Mauritius is characterised by an intertemporal decision-making path. In other words, to what extent does local government expenditure respond to contemporaneous changes in revenues. In this respect, the article contributes to the existing body of literature by exploring the context of an upper-middle-income country like Mauritius while factoring intertemporal choice in the supply of local public goods. Moreover, the article determines the short-run and long-run responsiveness of local public expenditure to Gross Domestic Product (GDP) through an error correction model based on time series data for Mauritius over the period 1987–2017. Our findings indicate that local government spending becomes less sensitive to its previous values when GDP and its past values are introduced as control variables in the model. Local government expenditure and real output are also found to be co-integrated or to share a long-term relationship. JEL Classification: B22, C1, D9, H4, H11

scholarly journals PENGARUH KINERJA KEUANGAN DAN KARAKTERISTIK DAERAH TERHADAP PENYAJIAN LAPORAN KEUANGAN PEMERINTAH DAERAH MELALUI INTERNET

2020 ◽  
Vol 6 (2) ◽  
pp. 157-172
Author(s):  
Priyastiwi Priyastiwi ◽  
Nunung Saputra
Keyword(s):  
Local Government ◽  
Financial Performance ◽  
Government Expenditure ◽  
Financial Statements ◽  
Financial Information ◽  
The Internet ◽  
Voluntary Reporting ◽  
Central Java ◽  
Per Capita ◽  
Local Government Expenditure

The purpose of this research is to analyze the effect of local government financial performance and their characteristic on the degree of their voluntary reporting of financial statements on the internet. Local government financial performance are measured by intergovernmental revenue, local government expenditure, local government assets, and leverage. While the local government characteristic is income per capita. The samples are financial statement of local government in DIY and Central Java. A total of 40 financial statements are 5 from financial statements form DIY and 35 financial statements form Central Java. The research analysis used multiple regression analysis. The results of this study show the performance financial are intergovernmental revenue, local government expenditure, local government assets have significant positive effect on degree of their voluntary reporting of financial information on the internet, while leverage have significant negative effect. On the otherhand income per capita has no effect on degree of their voluntary reporting of financial information on the internet.

scholarly journals The Effect of General Allocation Funds and Local Own-Revenue on Regional Government Expenditure in Central Java Province

2021 ◽  
Vol 2 (1) ◽  
pp. 257-266
Author(s):  
Samsul Afif Rahula ◽  
Prasetyo Ari Bowo
Keyword(s):  
Central Government ◽  
Time Series Data ◽  
Government Expenditure ◽  
Series Data ◽  
Regional Government ◽  
Significant Positive Effect ◽  
Central Java ◽  
High Dependency ◽  
Positive Effect ◽  
Central Java Province

The implementation of regional autonomy indirectly requires regions to be independent, the level of independency in Central Java which is measured by the ratio of Local Own-source Revenue to total regional revenue of 18.2%, which is the lowest compared to other regions in Java in the 2015-2018 period. Central Java's low independency is in line with its dependency on transfers from the central government, particularly the general allocation fund of 40%. Low independency and high dependency is due to the lack of ability of Local Own-source Revenue to meet regional expenditures and the large role of general allocation fund in meeting these shortages. This study aims to analyze the effect of general allocation funds and local own-source revenue on regional expenditures. This study uses a quantitative method with panel data combination of cross-section data from 35 districts/cities in Central Java Province and time-series data for the period 2016-2018. The analytical method used is multiple linear regression. The results of this study indicate that the general allocation fund has a significant and more dominant positive effect on regional expenditures and also local own-source revenue shows a significant positive effect on regional expenditures, which means that the greater the value of local own-source revenue and general allocation fund, the greater the value of regional expenditures. Simultaneously, general allocation funds and local own-source revenue have a significant positive effect on regional expenditures.

scholarly journals THE ROLE OF LOCAL GOVERNMENT EXPENDITURE ON ECONOMIC GROWTH: A REVIEW OF PANEL DATA IN INDONESIA

2019 ◽  
Vol 7 (5) ◽  
pp. 1293-1303
Author(s):  
Agus Tri Basuki ◽  
Yunastiti Purwaningsih ◽  
Mulyanto ◽  
A. M. Susilo
Keyword(s):  
Economic Growth ◽  
Panel Data ◽  
Local Government ◽  
Cross Section ◽  
Foreign Investment ◽  
Raw Materials ◽  
Government Expenditure ◽  
Local Economy ◽  
Series Data ◽  
Local Government Expenditure

Purpose of the study: This research aims to empirically prove the composition of local government expenditure (education, health, marine and fisheries, agriculture, and general allocation fund) on economic growth in 18 provinces in Indonesia from 2010 to 2015. Methodology: The model used in this research is panel data regression. The use of panel data in regression can provide more information that cannot be provided by cross-section or time-series data, and provides the best solution for inferring dynamic changes than cross-section data. Main Findings: The findings in this study are foreign investment has no influence on economic growth. Fiscal policies that are carried out are not effective in encouraging economic growth, and the use of the General Allocation Fund is not on target. Applications of this study: Foreign investment must be a trigger for the local economy and the national economy by means of foreign investment in Indonesia which is prioritized using raw materials and local labour, so that dependence on imported raw materials can be minimized. To overcome leakage of development budget must implement a budgeting system that is oriented towards organizational output and is very closely related to the organization's vision, mission, and strategic plan. The use of general allocation funds needs to be monitored by certain institutions and prioritizing public interest.

scholarly journals The Flypaper Effect Phenomenon: Evidence from Indonesia

2018 ◽  
Vol 2 (1) ◽  
pp. 21
Author(s):  
Ansharullah Tasri
Keyword(s):  
Panel Data ◽  
Local Government ◽  
Central Government ◽  
Fiscal Decentralization ◽  
Government Expenditure ◽  
Provincial Government ◽  
Least Square ◽  
Flypaper Effect ◽  
Decentralization Policy ◽  
Local Government Expenditure

One of the implementations of autonomy policy is fiscal decentralization. The State gives chance to every local government for improving its fiscal ability. Original Local Government Revenue (PAD) is fiscal potency owned local government to improve local government independence to promote welfare to society. To accelerate fiscal independence of local government equally, the central government sends transfer funds in the form of General Allocation Funds (DAU) which aims to comply local government expenditure that has not fulfilled. However, problems faced is local government expenditure management still much more affected by DAU rather than PAD. It indicates that local government still depends on central government to comply expenditure called flypaper effect. This research aims to analyze the effect of PAD and DAU on local government expenditure by identifying whether occurs flypaper on provincial government in Indonesia. The method used in this research is analysis regression of panel data with Generalized Least Square (GLS). Data used is panel data from 34 provinces in Indonesia between 2008-2017. Based on results estimation, PAD and DAU positively and significantly affect local government expenditure. However, the DAU more affects local government expenditure compared with PAD. This exhibits that flypaper effect phenomenon occurred on provincial government in Indonesia which local government expenditure response more affected by DAU than PAD. It is happening due to the provincial government still relies on central government to comply its expenditure illustrated with high DAU transfers. This research concludes that decentralization policy in Indonesia is not effective yet. Thus, the government needs to adjust decentralization policy in order to improve regional fiscal independence.

scholarly journals The Flypaper Effect Phenomenon: Evidence from Indonesia

2018 ◽  
Vol 2 (1) ◽  
pp. 20
Author(s):  
Ansharullah Tasri
Keyword(s):  
Panel Data ◽  
Local Government ◽  
Central Government ◽  
Fiscal Decentralization ◽  
Government Expenditure ◽  
Provincial Government ◽  
Least Square ◽  
Flypaper Effect ◽  
Decentralization Policy ◽  
Local Government Expenditure

One of the implementations of autonomy policy is fiscal decentralization. The State gives chance to every local government for improving its fiscal ability. Original Local Government Revenue (PAD) is fiscal potency owned local government to improve local government independence to promote welfare to society. To accelerate fiscal independence of local government equally, the central government sends transfer funds in the form of General Allocation Funds (DAU) which aims to comply local government expenditure that has not fulfilled. However, problems faced is local government expenditure management still much more affected by DAU rather than PAD. It indicates that local government still depends on central government to comply expenditure called flypaper effect. This research aims to analyze the effect of PAD and DAU on local government expenditure by identifying whether occurs flypaper on provincial government in Indonesia. The method used in this research is analysis regression of panel data with Generalized Least Square (GLS). Data used is panel data from 34 provinces in Indonesia between 2008-2017. Based on results estimation, PAD and DAU positively and significantly affect local government expenditure. However, the DAU more affects local government expenditure compared with PAD. This exhibits that flypaper effect phenomenon occurred on provincial government in Indonesia which local government expenditure response more affected by DAU than PAD. It is happening due to the provincial government still relies on central government to comply its expenditure illustrated with high DAU transfers. This research concludes that decentralization policy in Indonesia is not effective yet. Thus, the government needs to adjust decentralization policy in order to improve regional fiscal independence.

PENGARUH KINERJA KEUANGAN DAN KARAKTERISTIK DAERAH TERHADAP PENYAJIAN LAPORAN KEUANGAN PEMERINTAH DAERAH MELALUI INTERNET

2019 ◽  
Vol 6 (2) ◽  
pp. 157-172
Author(s):  
Priyastiwi Priyastiwi ◽  
Nunung Saputra
Keyword(s):  
Local Government ◽  
Financial Performance ◽  
Government Expenditure ◽  
Financial Statements ◽  
Financial Information ◽  
The Internet ◽  
Voluntary Reporting ◽  
Central Java ◽  
Per Capita ◽  
Local Government Expenditure

The purpose of this research is to analyze the effect of local government financial performance and their characteristic on the degree of their voluntary reporting of financial statements on the internet. Local government financial performance are measured by intergovernmental revenue, local government expenditure, local government assets, and leverage. While the local government characteristic is income per capita. The samples are financial statement of local government in DIY and Central Java. A total of 40 financial statements are 5 from financial statements form DIY and 35 financial statements form Central Java. The research analysis used multiple regression analysis. The results of this study show the performance financial are intergovernmental revenue, local government expenditure, local government assets have significant positive effect on degree of their voluntary reporting of financial information on the internet, while leverage have significant negative effect. On the otherhand income per capita has no effect on degree of their voluntary reporting of financial information on the internet

scholarly journals Determinan Kualitas Pembangunan Manusia di Kabupaten/Kota Provinsi Jawa Tengah

2018 ◽  
Vol 5 (3) ◽  
pp. 269-277
Author(s):  
Agung Yudhi Pramono ◽  
Etty Soesilowati
Keyword(s):  
Local Government ◽  
Capita Income ◽  
Government Expenditure ◽  
Health Sector ◽  
Least Square ◽  
Dependency Ratio ◽  
Per Capita Income ◽  
Central Java ◽  
Per Capita ◽  
Local Government Expenditure

Penelitian ini bertujuan untuk menganalisis seberapa besar pengaruh pengeluaran pemerintah daerah sektor pendidikan, pengeluaran pemerintah daerah sektor kesehatan, rasio ketergantungan penduduk dan pendapatan perkapita terhadap pembangunan manusia yang diukur dengan IPM. Populasi penelitian terdiri dari 35 Kabupaten/Kota di Provinsi Jawa Tengah, menggunakan data sekunder dari Badan Pusat Statistik Provinsi Jawa Tengah dan Biro Keuangan Sekretaris Daerah Provinsi Jawa Tengah dalam periode 2009 sampai 2013. Variabel penelitian ini indeks pembangunan manusia, pengeluran pemerintah daerah sektor pendidikan, pengeluaran pemerintah daerah sektor kesehatan, rasio ketergantungan penduduk, dan pendapatan perkapita. Dalam penelitian ini, digunakan metode penelitian kuantitatif dengan menggunakan analisis regresi data panel model efek tetap (FEM) dengan metode Generalized Least Square (GLS). Hasil penelitian ini dapat diketahui bahwa pengeluaran pemerintah daerah sektor pendidikan berpengaruh positif dan signifikan terhadap IPM, pengeluaran pemerintah daerah sektor kesehatan berpengaruh positif dan signifikan terhadap IPM, rasio ketergantungan penduduk berpengaruh negatif dan signifikan terhadap IPM, sementara pendapatan perkapita tidak berpengaruh secara signifikan terhadap IPM. This research has purpose to analyze how much influence of the local government expenditure in educational sector, local government expenditure in health sector, dependency ratio, and per capita income of a human development measured by HDI. the population of this research consists of 35 regionals in Central Java and region bureau money secretary of Central Java province among 2009 and 2013 period. the variables used in this research are HDI, local government expenditure in educational sector, local government expenditure in health sector, dependency ratio, and per capita income. in this research, quantitative and regression analysis of Fixed Effect Model is used as well as Generalized Least Square method (GLS). The results of this research are the outcome of regional government in educational and health sector influence significance and positively to the HDI, dependency ratio significance and negatively influence to the HDI, while per capita income does not influence significance to the HDI.

scholarly journals The Flypaper Effect Phenomenon: Evidence from Indonesia

2018 ◽  
Vol 2 (1) ◽  
pp. 21-26
Author(s):  
Ansharullah Tasri
Keyword(s):  
Panel Data ◽  
Local Government ◽  
Central Government ◽  
Fiscal Decentralization ◽  
Government Expenditure ◽  
Provincial Government ◽  
Least Square ◽  
Flypaper Effect ◽  
Decentralization Policy ◽  
Local Government Expenditure

Abstract One of the implementations of autonomy policy is fiscal decentralization. The State gives chance to every local government for improving its fiscal ability. Original Local Government Revenue (PAD) is fiscal potency owned local government to improve local government independence to promote welfare to society. To accelerate fiscal independence of local government equally, the central government sends transfer funds in the form of General Allocation Funds (DAU) which aims to comply local government expenditure that has not fulfilled. However, problems faced is local government expenditure management still much more affected by DAU rather than PAD. It indicates that local government still depends on central government to comply expenditure called flypaper effect. This research aims to analyze the effect of PAD and DAU on local government expenditure by identifying whether occurs flypaper on provincial government in Indonesia. The method used in this research is analysis regression of panel data with Generalized Least Square (GLS). Data used is panel data from 34 provinces in Indonesia between 2008-2017. Based on results estimation, PAD and DAU positively and significantly affect local government expenditure. However, the DAU more affects local government expenditure compared with PAD. This exhibits that flypaper effect phenomenon occurred on provincial government in Indonesia which local government expenditure response more affected by DAU than PAD. It is happening due to the provincial government still relies on central government to comply its expenditure illustrated with high DAU transfers. This research concludes that decentralization policy in Indonesia is not effective yet. Thus, the government needs to adjust decentralization policy in order to improve regional fiscal independence.

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