The Analysis of Regional Expenditure Responses to Block Grants Transfer from Central Government

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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The Flypaper Effect Phenomenon: Evidence from Indonesia

European Journal of Engineering and Formal Sciences ◽

10.26417/ejef.v2i1.p20-24 ◽

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.

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FLYPAPER EFFECT THEORY DALAM IMPLEMENTASI KEBIJAKAN DESENTRALISASI FISKAL

Jurnal Ekonomi Pembangunan Kajian Masalah Ekonomi dan Pembangunan ◽

10.23917/jep.v11i1.335 ◽

2015 ◽

Vol 11 (1) ◽

pp. 69

Author(s):

Suyanto Suyanto

Keyword(s):

Central Government ◽

Fiscal Decentralization ◽

Flypaper Effect ◽

Effect Theory ◽

Decentralization Policy ◽

Fiscal Imbalance ◽

Vertical Fiscal Imbalance ◽

The Impact ◽

Financial Transfer ◽

Regional Governments

Fiscal decentralization can be considered as intergovernmental financial assistance within a state. This assistance is commonly called intergovernmental financial transfer that is transfer of fund from a level of government to another level. Generally, the transfer is usually occurred from a higher level of government the lower counterpart of a single state. The re- search is conducted to prove that Flypaper Effect has occurred in fiscal decentralization policy. The research finds that regional governments use the transfer for increasing their expenditures without raising the tax. The impact which is occurred from correlation of financial transfer by central government toward the income and expenditure of regional governments shows flypaper effect indication in the implementation of fiscal decentralization. In that case, the effect to the increase in regional expenditure is bigger than the effect toward its income. This is showing that transfer of the fund has caused the increase in vertical fiscal imbalance. Transfer of funds encourages the increase in the expenditure of autonomous regions.

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The Flypaper Effect Phenomenon: Evidence from Indonesia

European Journal of Engineering and Formal Sciences ◽

10.2478/ejef-2018-0003 ◽

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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The Analysis of Economic Development GAP Between Regencies in Central Java Provinces

Economics Development Analysis Journal ◽

10.15294/edaj.v5i2.22032 ◽

2018 ◽

Vol 5 (2) ◽

pp. 194-199

Author(s):

Panji Irawan Yogyadipratama ◽

P. Eko Prasetyo

Keyword(s):

Economic Development ◽

Panel Data ◽

Labor Force ◽

Central Government ◽

Linear Regression Analysis ◽

Development Aid ◽

Series Data ◽

Know How ◽

Central Java ◽

Central Java Province

The purpose of this study were (1) to know how the development level of inequality of economic development in Central Java Province according to Williamson Index; (2) determine the extent of the influence of the labor force to the level of economic development of Central Java Province; and (3) know how to influence the allocation of development aid districts / cities to the economic development of Central Java province. This research is a quantitative research used panel data, time series data (years 2002-2011) and cross section (35 districts / cities in Central Java province). The data used in this research is secondary data obtained from the Central Statistics Agency (BPS). The analytical method used is the method of multiple linear regression analysis of panel data with FEM methods used tools Eviews 7 software. Results of the study is to show (1) the economic development gaps between regions in Central Java province which is calculated using Williamson index during the period 2008-2011 showed a widening inequality; (2) the allocation of development aid from the central government uneven and areas that receive aid are too large can increase the level of inequality between regions. This is due to the construction of concentrated to areas that are already developed than areas that are still lagging behind, because the area is developed better facilities from areas not yet developed; and (3) R2 value of 0.9949 means variable variation inequality of economic development in Central Java province can be explained by variables of the labor force and the allocation of regional development funds amounting to 95.5% while the remaining 0.05% is explained by other factors outside the model

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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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PENGARUH KEMANDIRIAN KEUANGAN DAERAH TERHADAP PERTUMBUHAN EKONOMI KABUPATEN/KOTA PROVINSI BANTEN

JURNAL EKONOMI DAN KEBIJAKAN PEMBANGUNAN ◽

10.29244/jekp.3.1.8-22 ◽

2018 ◽

Vol 3 (1) ◽

pp. 8-22

Author(s):

Stannia Cahaya Suci ◽

Alla Asmara

Keyword(s):

Economic Growth ◽

Panel Data ◽

Key Words ◽

Central Government ◽

Fiscal Decentralization ◽

Regional Finance ◽

Local Revenue ◽

Negative Effect ◽

Positive Effect ◽

Descriptive Method

Fiscal decentralization aims to improve regional finance independency and reduce the fiscal dependency of central government. However, in practice, there are many areas that still rely on the assistance central finance for their regional development. This research aims to discuss the development of regional finance independency and analyze the influence of regional finance independency on economic growth in Banten Province. This research uses descriptive method and panel data on 6 (six) regencies and cities in Banten Province at 2001-2011. The results showed the significantly positive effect of regional finance independency on economic growth and significantly negative effect of balance fund’s ratio on economic growth. Key words: local revenue, economic growth, panel data

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PENGARUH KEMANDIRIAN KEUANGAN DAERAH TERHADAP PERTUMBUHAN EKONOMI KABUPATEN/KOTA PROVINSI BANTEN

JURNAL EKONOMI DAN KEBIJAKAN PEMBANGUNAN ◽

10.29244/jekp.3.1.2014.8-22 ◽

2018 ◽

Vol 3 (1) ◽

pp. 8-22

Author(s):

Stannia Cahaya Suci ◽

Alla Asmara

Keyword(s):

Economic Growth ◽

Panel Data ◽

Key Words ◽

Central Government ◽

Fiscal Decentralization ◽

Regional Finance ◽

Local Revenue ◽

Negative Effect ◽

Positive Effect ◽

Descriptive Method

Fiscal decentralization aims to improve regional finance independency and reduce the fiscal dependency of central government. However, in practice, there are many areas that still rely on the assistance central finance for their regional development. This research aims to discuss the development of regional finance independency and analyze the influence of regional finance independency on economic growth in Banten Province. This research uses descriptive method and panel data on 6 (six) regencies and cities in Banten Province at 2001-2011. The results showed the significantly positive effect of regional finance independency on economic growth and significantly negative effect of balance fund’s ratio on economic growth. Key words: local revenue, economic growth, panel data

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The Effect of Fiscal Decentralization on the Accountability of City / District Government Financial Reporting in Indonesia and the Regional Government's Financial Performance as a Moderation Variable

Volume 5 - 2020, Issue 9 - September - International Journal of Innovative Science and Research Technology ◽

10.38124/ijisrt20jul271 ◽

2020 ◽

Vol 5 (7) ◽

pp. 370-376

Author(s):

Wahida Nurmuthmainnah ◽

Syarifuddin . ◽

Mediaty .

Keyword(s):

Local Government ◽

Financial Performance ◽

Financial Reporting ◽

Local Governments ◽

Central Government ◽

Fiscal Decentralization ◽

Financial Statements ◽

Series Data ◽

Financial Reports ◽

Regional Governments

This study aims to provide an overview of the effects of fiscal decentralization in proxies with regional independence and regional dependence on the central government regarding accountability of regional financial reporting and financial performance of Local Governments as moderating variables. The type of data used in this study is secondary data, panel data in the form of time series data from 2015 to 2017 and cross section data from 509 districts / cities in Indonesia. The sample selection in this study was purposive sampling by creating a cluster of western, central and eastern regions, so that 135 samples were obtained. The results showed that: (1) Regional independence had a positive effect on the accountability of local government financial reports. (2) Regional Dependence has a negative effect on the Accountability of Regional Government Financial Statements. (3) The financial performance of regional governments can moderate the influence of regional independence on the accountability of local government financial reports. (4) The financial performance of regional governments can moderate the effect of regional dependence on the accountability of local government financial statements.

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Optimasi Penyusunan Anggaran Penjualan Menggunakan Lagrange Multiplier

JURNAL Al-AZHAR INDONESIA SERI SAINS DAN TEKNOLOGI ◽

10.36722/sst.v3i1.179 ◽

2017 ◽

Vol 3 (1) ◽

pp. 10

Author(s):

Widya Nurcahayanty Tanjung ◽

Tiara Juanita

Keyword(s):

Lagrange Multiplier ◽

Planning Process ◽

Lagrange Method ◽

West Java ◽

Central Java ◽

Profit Optimization ◽

The Future ◽

Minimum Numbers ◽

Total Sales ◽

Minimum Points

<div class="WordSection1">Abstrak - Optimasi keuntungan dapat dicapai melalui berbagai macam cara, salah satunya adalah dengan merencanakan dan mengendalikan anggaran penjualan. Perencanaan dan pengendalian penjualan yang dirancang dengan baik dan tepat diharapkan mampu membantu dalam mencapai target penjualan agar memperoleh laba yang optimal. Pada umumnya, anggaran penjualan disusun terlebih dahulu sebelum menyusun anggaran lainnya. Tujuan utama pembuatan anggaran ini adalah untuk mengurangi ketidakpastian dimasa depan, memasukkan pertimbangan atau keputusan manajemen dalam proses perencanaan, memberikan informasi dalam profit planning control, serta mempermudah pengendalian penjualan. Metode Lagrange adalah metode yang digunakan untuk menentukan titik maksimum dan minimum suatu fungsi yang diiringi dengan persyaratan atau kendala yang harus dipenuhi. Metode ini berguna untuk memperoleh nilai-nilai maksimum relatif atau minimum relatif dari fungsi f(x,y) yang dipengaruhi oleh fungsi persyaratan g(x,y)=0. Langkah pertama yang dilakukan dalam optimasi anggaran ini yaitu melakukan peramalan agregat permintaan dilanjutkan dengan disagregasi permintaan ke setiap region berdasarkan kontribusi penjualan, kemudian menyusun anggaran penjualan dengan metode Lagrange Mulitplier hingga diperoleh keuntungan yang optimal. Berdasarkan hasil agregasi penjualan, jumlah produk yang harus dijual yaitu sebesar 33,331 kardus. Jumlah alokasi untuk setiap region berdasarkan hasil disagregasi penjualannya yaitu sebesar 4,267 kardus untuk Jabotabek, 611 kardus untuk West Java, 900 kardus untuk West Outer Islands, 318 kardus untuk Central Java, 400 kardus untuk East OI 2, 645 kardus untuk EOI (Dummy), 25 kardus untuk EAST OI 1, dan 26,167 kardus untuk Non XYZ Brand. Dengan demikian, jumlah anggaran penjualan tahun 2014 yaitu sebesar Rp6.594.350.758,- dengan jumlah keuntungan optimal yang dapat diperoleh perusahaan sebesar Rp 4.035.316.605,- atau sama dengan 61% dari jumlah anggaran penjualan. Kata Kunci – Optimasi, Anggaran penjualan, Lagrange Multiplier, Peramalan</div> <div class="WordSection2"> </div> Abstract – Many ways can be cultivated to reach profit optimization, such as planning and controlling in sales budgeting can be used as a method. Good in sales planning and controlling might be help to achieve sales target as an effort to get optimize profit. In general, sales’ planning is arranged as a first step before creating another budgeting plan. The main objectives in this work are minimizing uncentanty in the future, considering management judgment in planning process, giving information in profit planning control, and simplying sales control. Lagrange method can be used to determine optimum and minimum points from a function which followed by bounderies that must be filled. This method is useful to calculate relatives maximum or relatives minimum numbers from a function f(x,y) that influenced by requirement function g(x,y)=0. To finish optimizing budgeting plan, firstly, calculating the demand aggregate planning therefore continued by demand disagregations to all region based on their sales contributions. Moreover, followed by compiling sales budgeting using Lagrange Mutliplier method’s to obtain optimum profit. Based on sales aggregation result, number of product should be sales are 33.331 cartons. Number of allocation for each regions followed by sales agregations results are 4.267 cartons for Jabotabek, 611 cartons for West Java, 900 cartons for West Outer Islands, 318 cartons for Central Java, 400 cartons for East OI 2, 645 cartons for EOI (Dummy), 25 cartons for EAST OI 1, and 26,167 cartons for Non XYZ Brand. Therefore, total sales budgeting in year 2014 is Rp 6.594.350.758,- and number of optimum profit that company earn is Rp 4.035.316.605,- or equal by 61% from total sales budgeting. Keyword – Optimization, sales budgeting, Lagrange Multiplier, Forecasting

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