A Study on the Determinants of Local Governments’ Grant Expenditure: Focusing on the Operating Cost Grant and Capital Expenditure Grant

2019 ◽  
Vol 29 (1) ◽  
pp. 235-259
Author(s):  
Jieun Lee
Keyword(s):  
Local Governments ◽  
Capital Expenditure ◽  
Operating Cost

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

Measuring the Financial Crisis in Local Governments through Data Mining

2010 ◽  
pp. 21-46
Author(s):  
José Luis Zafra-Gómez ◽  
Antonio Manuel Cortés-Romero
Keyword(s):  
Data Mining ◽  
Local Governments ◽  
Financial Analysis ◽  
Capital Expenditure ◽  
Data Mining Technique ◽  
Predictive Capacity ◽  
Financial Independence ◽  
Four Dimensions ◽  
Financial Condition ◽  
Explanatory Factors

In local government, the financial analysis is focused on evaluating the financial condition of municipalities, and this is normally accomplished via an analytic process examining four dimensions: sustainability (or budgetary stability), solvency, flexibility and financial independence. Accordingly, the first goal the authors set out to achieve in this chapter is to determine the principal explanatory factors for each of the above dimensions. This is done by examining a wide range of ratios and indicators normally available in published public accounts, with the aim of extracting the most significant explanatory variables for sustainability, solvency, flexibility and financial independence. They use a rule induction algorithm called CHAID, which provides a highly efficient data mining technique for segmentation, or tree growing. The research sample includes 877 Spanish local authorities with a population of 1000 inhabitants or more. The developed model presents a high degree of explanatory and predictive capacity. For the levels of budgetary sustainability the most significant variables are those related to the current margin, together with the importance of capital expenditure in the budgetary structure. On the other hand, the short-term solvency depends on the liquid funds possessed by the entity. The flexibility, however, depends mainly on the financial load per inhabitant of the municipality, on the total sum of fixed charges. Finally, financial independence depends fundamentally on the transfers that the entity receives and on the fiscal pressure, among other elements.

scholarly journals Panel Data Approach of the Firm’s Value Determinants: Evidence from the Jordanian Industrial Firms

2016 ◽  
Vol 10 (5) ◽  
pp. 163
Author(s):  
Imad Zeyad Ramadan
Keyword(s):  
Developing Countries ◽  
Panel Data ◽  
Capital Expenditure ◽  
Operating Cost ◽  
Joint Effect ◽  
Risk Level ◽  
Industrial Firms ◽  
Tax Rate ◽  
Book Value ◽  
Main Determinants

<p class="zhengwen">This study aimed to investigate the main determinants of the industrial firms' value in developing countries namely Jordan. To achieve this goal all 77 ASE listed industrial firms for the period from 2000 to 2014 were utilized resulting in 974 firm-year observations. Twelve firm specific variables, namely, firm's size; firm's age; firm's risk level; firm's sales revenue; firm's operating cost; firm's tax rate; firm's net margin; firm's capital expenditure; firm's book value; firm's earning per share; firm's dividend per share and firm's pay-out ratio, were tested as a possible determinates of the firm's value.  After testing for Multicollinearity and Heteroscedasticity the result of the unbalanced panel data Multi-regression model approach shows that the joint effect of the twelve potential determinants interprets about 37% of the variation in the value of the Jordanian industrial firms listed at ASE (R-squares = 0.3682), therefore, firm's in developing countries like Jordan should concentrate on these specific variables of the firms in order to improve the value and thus the wealth of the shareholders<strong>. </strong></p>Another finding of the study is that the firm's risk level and tax rate are not statistically significant drivers of the Jordanian industrial firm's value. The findings of the effect of firm's risk level and tax rate on the firm's value were contrary with Tiwari Ranjit et al (2015) and Rappaport (1998) respectively.

scholarly journals Flypaper Effect of Regional Expenditures in Yogyakarta

2018 ◽  
Vol 2 (3) ◽  
Author(s):  
Muh Rudi
Keyword(s):  
Local Governments ◽  
Capital Expenditure ◽  
Financial Resources ◽  
Local Autonomy ◽  
Flypaper Effect ◽  
Regional Autonomy ◽  
Local Revenue ◽  
Local Taxes ◽  
Article 5 ◽  
Stimulation Of

One of the consequences as a  result of the implementation of regional autonomy is that local governments must have sufficient financial resources to pay their autonomy government. The financial capacity of local governments would determine the ability of local governments to perform the functions of government. Considering Article 5 of Law No. 33, 2004, sources of regional revenue are regional revenues, balance funds/ transfers and financing. When local revenue comes from the transfers, the stimulation of expenditure is different from the stimulation that arises from local revenue (especially local taxes). This study focuses on identifying the flypaper effect on expenditure areas and its classification with samples of five districts and cities in Yogyakarta during 2006-2015. This paper argued that during the period among flypaper did not occur in the expenditure area and sub expenditure areas. In addition, flypaper found only in capital expenditure, while expenditure is not a suspect. Keywords: flypaper, autonomy and fiscal needs, local autonomy, Yogyakarta

scholarly journals ANALYSIS OF FACTORS AFFECTING FISCAL STRESS IN LOCAL GOVERNMENTS (Case Studies in Districts/Cities in Kunci Bersama Areas for the Period of 2015 - 2019)

2020 ◽  
Vol 3 (2) ◽  
Author(s):  
Neni - Nurhayati
Keyword(s):  
Local Governments ◽  
Capital Expenditure ◽  
Secondary Data ◽  
City Government ◽  
Fiscal Stress ◽  
Test Results ◽  
Factors Affecting ◽  
Local Revenue ◽  
Negative Effect ◽  
Saturated Sample

AbstractThis study aims at determining the effect of local revenue and capital expenditure on Fiscal Stress in the Kunci Bersama Area in 2015-2019. The population of this study is the district/city government in the Kunci Bersama Area. The entire population becomes a sample called the saturated sample (census). This study has 45 data observations derived from 9 districts/cities' financial statements for the 2015-2019 period. The data used in this study is secondary data in the form of a Budget Realization Report in the Kunci Bersama Areas for the 2015-2019 Period. The hypothesis testing tool in this study is the Eviews 9 software. From the test results, it is found that local revenue and capital expenditure affect fiscal stress. Local revenue has a negative effect on fiscal stress, while capital expenditure positively affects fiscal stress.�Keywords: Regional Own Income, Capital Expenditure, and Fiscal Stress

scholarly journals FACTORS INFLUENCING THE WEAKNESSES OF INTERNAL CONTROL OF LOCAL GOVERNMENTS IN INDONESIA

2020 ◽  
Vol 8 (1) ◽  
pp. 122-129
Author(s):  
Kiswanto ◽  
Ain Hajawiyah ◽  
Yunindya Lazty Mahera
Keyword(s):  
Local Government ◽  
Internal Control ◽  
Local Governments ◽  
Capital Expenditure ◽  
Financial Statements ◽  
System Quality ◽  
Government Control ◽  
Factors Influencing ◽  
Internal Control Weaknesses ◽  
The Republic

Purpose of the study: This paper aims to examine the factors influencing local government internal control weakness, includes leverage, locally generated revenue, capital expenditure, complexity, previous year's internal control weaknesses findings Methodology: The population of this research is the audit report of the Audit Board of the Republic of Indonesia (BPK) in the Regency/City of West Indonesia with a total of 263 financial statements. The purposive sampling method is used, resulting in 186 financial statements as samples. Hypotheses are tested using multiple linear regression using SPSS V.21. Main Findings: The results of the study show that locally generated income, capital expenditure, and previous year’s internal control weaknesses findings positively affect the weaknesses of local government control. Meanwhile, leverage and regional complexity do not affect the weaknesses of local government internal controls. Lack of supervision among revenues and expenditures causes a decrease in local government internal control system quality. Applications of this study: This study can be useful for local governments to minimize the internal control weakness in the organization. Novelty/Originality of this study: Leverage and previous year’s finding on internal control weaknesses variables are included in this study because there have been only a few studies that use those variables. This research uses a different proxy than the previous ones with the aim of getting more accurate results.

Integrated Operations and Management of Wastewater Treatment Facilities in the Upstream Areas of Dams

2008 ◽  
Vol 3 (1) ◽  
Author(s):  
Geung Jeon Han ◽  
Ju Young Cho ◽  
Young Ju Kim
Keyword(s):  
Wastewater Treatment ◽  
Water Resources ◽  
Customer Service ◽  
Local Governments ◽  
Operating Cost ◽  
Integrated System ◽  
Process Efficiency ◽  
Operating Efficiency ◽  
Service Improvement ◽  
Treatment Facilities

Most of the wastewater treatment facilities in the upstream areas of dams in Korea are small and scattered and the local governments of these areas are financially very poor as well. Owing to these characteristics, though they directly impact the quality of water resources, operations and management of these facilities have been non effective. So, in this research, Korea Water Resources Corporation (K-water) has tried to integrate operations and management (O&M) of wastewater treatment facilities in these areas to maximize operating efficiency. Although there have been some difficulties measuring effects of an integrated system, we could see many positive consequences including operating cost reduction, effluent quality and process efficiency elevation, and customer service improvement in the centralized O&M.

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.

F. ANALISIS PENGARUH PAD DAN DAK TERHADAP BELANJA MODAL PROVINSI JAWA TIMUR TAHUN 2010-2019

2021 ◽  
Vol 4 (1) ◽  
pp. 61
Author(s):  
Putri Indah Sari ◽  
Dr. Ignatia Martha Hendrati, S.E., M.E. ◽  
Kiki Asmara,S.E.,MM
Keyword(s):  
Time Series ◽  
Local Governments ◽  
Time Series Data ◽  
Capital Expenditure ◽  
Linear Regression Analysis ◽  
Secondary Data ◽  
Coefficient Of Determination ◽  
Series Data ◽  
Capital Expenditures ◽  
Positive Effect

Abstrak Undang-Undang Nomor 32 Tahun 2004 tentang Otonomi daerah atau Desentralisasi menjelaskan bahwa kewajiban pemerintah daerah dalam mengendalikan daerahnya sesuai dengan aturan dan undang-undang yang berlaku. Pengalokasian Anggaran Belanja Modal didasarkan pada kebutuhan sarana dan prasarana daerah, anggaran Belanja Modal sebaiknya dialokasikan untuk hal-hal yang produktif. Sehingga, pemerintah daerah harus mampu mengalokasikan anggaran belanja modal dengan benar karena hal itu merupakan salah satu langkah pemerintah daerah dalam meningkatkan pelayanan publik. Penelitian ini bertujuan untuk menguji pengaruh dari Pendapatan Asli Daerah (PAD)  dan Dana Alokasi Khusus (DAK) terhadap Belanja Modal Provinsi Jawa Timur. Penelitian ini menggunakan analisis data time series Tahun 2015-2019 di Provinsi Jawa Timur. Data yang digunakan merupakan data sekunder yang diperoleh dari Direktorat Jenderal Perimbangan Keuangan Republik Indonesia. Metode analisis yang digunakan adalah Analisis Regresi linier berganda, Uji koefisien Determinasi (R2), Uji-t dan Uji F dengan bantuan software SPSS. Dari hasil penelitian menunjukkan bahwa Pendapatan Asli Daerah dan Dana Alokasi Khusus secara (simultan) mempunyai pengaruh signifikan terhadap Belanja Modal di Provinsi Jawa Timur Tahun 2010-2019. Secara parsial 1) Pendapatan Asli Daerah berpengaruh positif terhadap Belanja Modal Provinsi Jawa Timur Tahun 2010-2019. 2) Dana Alokasi Khusus berpengaruh positif  variabel PAD berpengaruh positif terhadap Belanja Modal Provinsi Jawa Timur Tahun 2010-2019.   Kata kunci : Belanja Modal, PAD, dan DAK. Abstract Law Number 32 of 2004 concerning Regional Autonomy or Decentralization explains that the obligation of local governments to control their regions is in accordance with the applicable laws and regulations. The allocation of the Capital Expenditure Budget is based on the needs of regional facilities and infrastructure, the capital expenditure budget should be allocated for productive things. Thus, local governments must be able to allocate the capital expenditure budget properly because this is one of the steps of the local government in improving public services. This study aims to examine the effect of Regional Original Income (PAD) and Special Allocation Funds (DAK) on the Capital Expenditure of East Java Province. This study uses time series data analysis 2015-2019 in East Java Province. The data used is secondary data obtained from the Directorate General of Fiscal Balance of the Republic of Indonesia. The analytical method used is multiple linear regression analysis, coefficient of determination (R2), t-test and F test with the help of SPSS software. The results of the study indicate that the Regional Original Income and the Special Allocation Funds (simultaneously) have a significant effect on capital expenditure in East Java Province in 2010-2019. Partially 1) Local Own Revenue has a positive effect on the Capital Expenditures of East Java Province in 2010-2019. 2) The Special Allocation Fund has a positive effect, the PAD variable has a positive effect on the Capital Expenditure of East Java Province in 2010-2019. Keywords: Capital Expenditures, PAD, and DAK

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