KAUSALITAS PENERIMAAN, PENGELUARAN DAN PDRB PROVINSI DI INDONESIA 2010 – 2019

This study has three main objectives, namely, first to find out how the causal relationship between local government revenue and local government expenditure in provinces in Indonesia, the second objective is to find out how the causal relationship between local government expenditure and GRDP in provinces in Indonesia. Meanwhile, the third objective is to determine the causal relationship between local government revenue and GRDP in provinces in Indonesia. In this study, the objects in this study are 33 provinces throughout Indonesia. The data used are from 2010 to 2019. The data used are secondary data obtained from the Central Statistics Agency (BPS). The analytical method used is the VAR (Vector Auto Regression) time series analysis and the cluasaility granger test. which is processed using the help of Eviews. Based on the results of hypothesis testing, it shows that: (1) There is no causal relationship between local government revenue and local government expenditure in 33 provinces in Indonesia, but what is formed is a one-way relationship between government revenue and local government expenditure in 33 Indonesian provinces. In the hypothesis testing stage (2) there is no causal relationship between local government spending and GRDP in 33 provinces in Indonesia, in the analysis stage there is no one-way or two-way relationship between government spending and GRDP. Thus the hypothesis is rejected, while the results of hypothesis testing (3) There is no causal relationship between local government revenue and GRDP in 33 provinces in Indonesia. In the analysis stage, there is no one-way or two-way relationship between each variable. Thus the third hypothesis is rejected.

The role of coalition parties and local government expenditure: Evidence from the developing country

This study aims at examining the role of coalition parties on local government expenditure. The coalition parties are comprised of several parties that support the regional head in the local government. Specifically, this study focuses on two important aspects of local government expenditure: education and health expenditure. The research question of the study is “Does the coalition parties have a significant effect on the local government expenditure?”. The independent variable of the study is coalition parties that support elected regional heads. The dependent variable is local government expenditure, which consists of education and health expenditures. The sample of the study was the local government in the Republic of Indonesia from the 2016–2018 period. There are 632 observations as the sample of the study. The results revealed that coalition parties have a negative effect on education and health expenditure. The higher percentage of coalition parties has decreased the local government expenditure on both education and health expenditures. The result of the study shows that coalition parties have a significant effect on the local government expenditure. This study confirms Lewis and Hendrawan’s (2019) argument that coalition parties have used their discretion to influence the regional heads’ decisions on the local government expenditure

Poverty Reduction in Regencies/Municipalities in South Sumatra Province

Local Government expenditure is budgeting for all government needs and activities and managed under the authority of provinces, regencies, and municipalities through their respective regional heads. Well-targeted Local Government expenditure optimization has a significant impact on the regional economy. This research aims to determine poverty reduction in regencies/municipalities in South Sumatra Province, Indonesia, by examining the variable’s impact of social assistance expenditure, capital expenditure, and local revenue on poverty. The data used are primary and secondary data obtained from 15 regencies/municipalities in South Sumatra Province during the 2010-2018 periods. The analysis technique uses in this research were Poverty Mapping with Klassen Typology and Multiple Linear Regression (MLR). Using the Klassen typology for poverty mapping in South Sumatra Province obtained four regional classifications (quadrant) based on poverty and economic growth: quadrant I (developed and fast-growing region), quadrant II (developed but depressed region), quadrant III (developing region), and quadrant IV (less developed region). The Klassen typology classification results: quadrant I include Palembang City, quadrant II includes Musi Banyuasin Regency, Muara Enim Regency, Ogan Komering Ilir Regency, and Banyuasin Regency. Quadrant III includes Ogan Komering Ulu Regency, Prabumulih City, and Lubuk Linggau City. Also, quadrant IV includes Lahat Regency, Musi Rawas Regency, Ogan Ilir Regency, Ogan Komering Ulu Timur Regency, Ogan Komering Ulu Selatan Regency, Empat Lawang Regency, and Pagar Alam City. The t-test regression results showed that Social assistance expenditure and local revenue affect poverty reduction, while capital expenditure does not significantly affect poverty reduction. The F-test regression results showed that poverty reduction was affected simultaneously by social assistance expenditure, capital expenditure, and local revenue. Policies in social assistance expenditure and capital expenditure were not well-targeted. The policies expected to reduce poverty are to provide well-targeted social assistance expenditure and capital expenditure.

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

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

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

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.

ANALISIS KUALITAS PENGELOLAAN KEUANGAN DAERAH DI PROVINSI PAPUA

In general, the aim of this study is to measure and analyze the quality of regional financial management in the Papua Provincial Government in a structured and comprehensive manner. Where the measurement and analysis methods used include a model of fiscal independence, the effectiveness and efficiency of local government revenue, as well as expenditure ratio models. Based on the results of measurements with the local government budgeting management analysis tools founds that overall the quality of local government budgeting management of the Provincial Government of Papua is good. The indicators of the quality of local government budgeting management can be seen from the timeliness in preparing the APBD-Induk and APBD-Perubahan, the efficiency and effectiveness of local government revenue, the ratio of PAD to local government revenue, absorption of Government Expenditure, the trend of SILPA, and BPK's opinion on LKPD. The quality of local government budgeting management by using the Timeliness Indicator in the preparation of the APBD-Induk and APBD-Perubahan looks varied and said to be of good quality, especially in 2015 and 2016, both the determination of APBD-Induk and APBD-Perubahan indicated on time. Furthermore, when analyzed in the trend of local government revenue, categorized quite well, where the level of efficiency and effectiveness is high, but its independence is still very low. In the composition of local government expenditure, capital expenditure tends to be always above employee expenditure, besides that the absorption capacity of local government expenditure is good because it averages close to 90% per year during the 2013-2015 period, so that the overall quality of local government budgeting management when observed from the performance of local government expenditure rated good. Next, in the SILPA APBD position, it tends to be always in a fluctuating positive value during 2013-2015, and categorized as good quality. Finally, based on the opinion of the BPK (Badan Pemeriksa Keuangan) on the LKPD (Laporan Keuangan Pemerintah Daerah), throughout 2015-2018 the Papua Province always received the title of WTP (Wajar Tanpa Pengecualian), so from the development of this opinion indicated that the local government budgeting management of the Provincial Government of Papua is very good.