Determinants of Government Characteristics and Audit Findings on Local Government Financial Performance

This study is based on the low success of local governments' financial performance in West Java Province, as evidenced by the fact that financial reports of local governments that receive unqualified opinions are still being found. The detection of numerous frauds in local governments is responsible for the majority of incidents of poor financial performance in local governments. Local government financial performance is related to local government size, dependence on central government, local spending, and audit findings. The purpose of this study was to examine the influence of local government characteristics and audit findings on the financial performance of local governments. Techniques analyzing data used regression model selection test with STATA version 16. This study builds on agency theory to develop a conceptual framework that connects local government size, dependence on central government, local expenditure, audit findings, and financial performance. The results of this study show that the size of local government, local spending has a significant effect on local government financial performance based on independence ratio and operating expenditure activity ratio, local government financial performance is unaffected by the dependence of central government or audit findings. Contributions to the West Java Provincial Government are required to be taken into account when making decisions and policies for the improved financial performance of local government.

DEFISIT ANGGARAN PENDAPATAN DAN BELANJA DAERAH KABUPATEN/KOTA PROVINSI DI SUMATERA SELATAN

This study aims to see how far the influence of regional own income, capital expenditure, and GDP on the budget deficit of regional own income and local expenditure in 14 districts/cities in South Sumatra province with used panel data with the number of time series from 2010-2019 and analysis method used is panel data regression by using fixed-effect model (FEM). The results of this study are regional own income and local expenditure have a positive effect on the increase in the budget deficit and GDP has a negative effect on the budget deficit in the South Sumatra province, and the magnitude of the influence of variables regional own income, local expenditure, and GDP with the budget deficit has a coefficient of determination of 94.3 percent which means that the variation of these variables in determining the budget deficit is very strong. Keywords: Budget Deficit, PAD, capital expenditure, GDP Abstak Penelitian ini bertujuan untuk melihat sejauh mana pengaruh pendapatan asli daerah, belanja modal dan PDRB terhadap Defisit Anggaran Pendapatan dan Belanja Daerah pada 14 kabupaten/kota di provinsi Sumatera Selatan dengan data yang digunakan adalah data panel dengan jumlah “time series” dari tahun 2010-2019 dan metode analisis yang digunakan adalah regresi data panel dengan menggunakan fixed effect model (FEM). Hasil dari penelitian ini adalah pendapatan asli daerah dan belanja modal memiliki pengaruh yang positif terhadap peningkatan defisit anggaran serta PDRB memiliki pengaruh yang negatif terhadap defisit anggaran di provinsi Sumatera Selatan, serta besaran pengaruh variabel pendapatan asli daerah, belanja modal dan PDRB terhadap defisit anggaran memiliki koefisien determinasi sebesar 94,3 persen yang berarti bahwa variasi variabel ini dalam menentukan defisit anggaran sangat kuat. Kata kunci: Defisit Anggaran, PAD, Belanja Modal, PDRB

A Study of The Linking Local Expenditure Quality to Reducing Poverty Rate in Bengkulu Province

Bengkulu Province is one of the regions in Indonesia that are still dealing with a high poverty rate. Various efforts made by the local government in addressing the problem of poverty have not yet met optimal results, despite the implementation of regional autonomy and fiscal decentralization nowadays. The research aimed to analyze the impact of the local expenditure quality on poverty reduction of regencies and municipality in Bengkulu Province. The analysis method used panel data analysis, which involved data of 10 regencies and municipality from 2015 to 2018. The result showed that the local expenditure quality of regencies and municipality in Bengkulu Province was less influential on the poverty rate. Lacking the alignment of local governments in poverty alleviation programs, so the poverty rate was difficult to reduce. It needs synergy and synchronization of policies with integrated various other fields or sectors, encourage increased entrepreneurial capacity and community empowerment.

ANALISIS BELANJA DAERAH PEMERINTAH KOTA MAGELANG TAHUN 2015-2019

Local Expenditure is all local government obligations recognized as a reduction in the value of net worth within the period of the relevant fiscal year. The government's success in managing regional spending can be seen from the output/results achieved by using the budget. Whether the achievement of the results provides benefits to the community or not. Good results show that local governments are performing well. The purpose of this research is to find out the financial performance of Magelang city government by conducting analysis of regional spending in fiscal year 2015-2019. The method used in this study is quantitative data measurement which results are interpreted with descriptive analysis methods. The results of this study show the Magelang City Government has been performing quite well. This is seen from the variance analysis showing budget planning and efforts to achieve budget usage efficiency are good enough, spending growth is volatile and positive, and the cost efficiency ratio is quite effective with an average efficiency rate of 85.47%. Even so, the Government still needs to improve the balance between capital expenditure and operating expenditure.

Impact of Fiscal Decentralisation on Economic Growth and Poverty Reduction in Aceh Province, Indonesia

This study analyses the impact of fiscal decentralisation policy on economic development and poverty reduction. It focuses on the practice of intergovernmental fiscal transfer and on special autonomy policy in Aceh province, Indonesia, using data from 23 districts gathered from 2008 to 2018. Undertaking a panel data analysis, it will analyse the impact of intergovernmental fiscal transfer from central to local government on local government expenditure. The impact of local government expenditures and fiscal decentralisation practices on local gross domestic product (GDP) and poverty is also measured. The results show that several intergovernmental fiscal transfer policies in Aceh positively enhance the local expenditure. Further, the local government spending and fiscal decentralisation practices in Aceh improve the local GDP and reduce poverty levels in the region.

A comprehensive approach to intergovernmental grants’ tactical allocation. Theory and estimation guidelines

Political economy literature highlights the tactical use of intergovernmental grants for electoral purposes; however, it provides different mechanisms and explanations behind these patterns. In this paper, we propose a model that includes 3 branches of the literature in order to provide a comprehensive explanation behind the tactical allocation by central governments. We identify 3 key parameters that shape the tactical allocation of grants: the electoral rule, the relative importance of the objective of the central government with respect to the local government, and the extent to which citizens attribute local expenditure to the direct action of the local government vs the central government (local political appropriability). In addition, our model also provides a guideline for designing and interpreting empirical results on the tactical allocation of grants distribution.

The Effect of Local Expenditure, Local Wealth Level, Audit Opinion, and Audit Findings on the Performance of Indonesian Local Governments

This study aims to determine the effect of local expenditure, local wealth level, audit opinion, and audit findings on the performance of local governments. This study uses the quantitative method, the hypothesis testing with multiple linear regression analysis was used, using SPSS version 23. The population is the local governments of Districts/Cities in Indonesia. The sample is 489 data samples were collected. Results obtained from testing showed that local expenditure, local wealth level, and audit opinion significantly affect the performance of local governments. Meanwhile, audit findings do not have a significant effect towards the Performance of Local Governments. Future studies are expected to be able to add more variables that have not been used in this study, such as government size, local standing, and intergovernmental standing.