This study aims to analyze the effect of the Village Fund on poverty alleviation and improvement of basic infrastructure services for drinking water and sanitation in districts and cities in Indonesia. The need for evaluation of the Village Fund policy is a consequence of the implementation of fiscal decentralization to villages based on Law no. 6/2014. This policy has implications for an increase in transfer funds to villages of more than IDR 329 trillion cumulatively. Theoretically, fiscal decentralization to villages should improve public services and accelerate poverty reduction through local preferences matching and more efficient allocations. This research was a quantitative study using path analysis to test the hypotheses. Data were obtained from BPS and the Ministry of Finance for all districts/cities receiving Village Fund. The results show that The Village Fund had a significant effect on poverty reduc-tion nationally, although its contribution was very small, and the effect was not significant in districts/cities with low fiscal capacity. The Village Funds had an effect on increasing drinking water but not significant, on the other hand, it had a significant effect on districts/cities with medium or low fiscal capacity with low poverty rate. The Village Fund had an effect on improving sanitation but it was not significant nationally or in all districts/cities. The Village Fund for drinking water had no significant effect on poverty reduction nationally and for all districts/cities. The Village Fund for sanitation had no effect on poverty reduction nationally or in all districts/cities but it had an effect on districts/cities with low fiscal capacity and poverty rate even though it was not significant. The implementation of the Village Fund policy needs to consider the fiscal capacity and diversity of regional characteristics in order to make the effectiveness of the Village Fund more optimal.
After the amendment, Regulation Number 25 of 1999 concerning Financial Balance between the Center and the Regions, but after the amendment of Regulation Number 33 of 2004 concerning Financial Balance between the Center and the Regions, the allocation of asset adjustments has moved to the dispersion of some normal assets in the area . The issue studied is where regional finance can increase and find sources of income which are expected to complement its independence as a result of the implementation of decentralization guidelines as adopted by the 1945 Constitution. The exploration technique used is essential literature studies, selected regulations and materials. tertiary legal materials, and the examination carried out is subjective standardization. With the issuance of the regulation on Fiscal Balance between the Center and the Regions after the amendment, it shows very large results for the implementation of provincial independence, considering that regional supporting sources are generally not solely based on PAD (Regional Revenue) results, but the regions also have different sources of initial funding from the regions, formerly only enjoyed by the central government.
 Keywords: Policy, Regional Finance, Post Reform
One form of the implementation of regional autonomy is the existence of autonomy in the aspect of regional financial management which is called fiscal autonomy. Fiscal autonomy is the delegation of responsibilities and the distribution of power and authority for decision-making in the fiscal sector, which includes both revenue and expenditure aspects. Fiscal decentralization is linked to the duties and functions of local goverment in providing public goods and services. This study aims to analyze the degree of fiscal decentralization in Southeast Sulawesi Province in 2016-2020.The degree of fiscal decentralization is a measure of the ability of local goverment in order to increase Local Own Revenue which is used to finance development in Southeast Sulawesi Province. This is study uses secondary data. The analytical tool used in this study is quantitative analysis, namely the analysis of the degree of fiscal decentralization, namely the ratio between Regional Original Income and Total Revenue Regional. The results showed that the degree of fiscal decentralization of Southeast Sulawesi Province in 2016-2020 fluctuated with an average 0f 25,25% so it could be said that it was still in the moderate category.
Riau Archipelago is one of the provinces established in the regional autonomy era. The province is enforced to well manage its local own-resources in realizing regional autonomy. This study is aimed at analyzing the degrees of independence, dependence, and fiscal decentralization of the province. Through the ratio analysis, it is expected that this study can give some references to the Provincial Government taken as the subject of the study, i.e. related to decision making aimed at increasing its regional independence as well as decreasing the dependency towards the Central Government. This study uses the Report on Local Government Finances of the Province of Riau Archipelago for the financial year of 2014-2020 as the research data. This study uses quantitative descriptive analysis method based on the local government finance ratios including regional financial independence ratio, regional financial dependence ratio, and regional fiscal decentralization ratio. This study shows that from regional independence aspect, the financial performance of the province is in medium fiscal capacity (55.84%) with participative relational pattern. Based on the degree of regional dependence aspect, it is in very high category (64.17%) while due to regional fiscal decentralization degree, its regional financial performance is in good category with an average of 35.69%.
Fiscal decentralization gives local governments the authority to use revenues to finance local expenditure, one of which is expenditures intended to improve the quality of human development. This study aims to analyze the effect of Local Own Source Revenue (PAD), Special Allocation Funds (DAK), and Surplus of Budget Financing (SiLPA) on the Human Development Index (IPM) through capital expenditure on districts/cities in North Sumatra. This study uses panel data consisting of time series data for 2015-2019 and cross section data for 33 districts/cities in North Sumatra. Hypothesis testing is done by multiple linear regression and path analysis. The results of the study proved that DAK and SiLPA have a positive impact on capital expenditures, while PAD has no impact on capital expenditures. Meanwhile, PAD and DAK directly have a significant positive effect on HDI, while SiLPA has no effect on HDI. In addition, PAD, DAK, and SiLPA indirectly have no significant effect on HDI through capital expenditure.
Budget Realization Report is a report that describes the realization of income, expenditure and financing for a period. Financial performance is a performance measure that uses financial indicators. This study aims to assess the financial performance of the North Sumatra Province Environmental Service Government Office for the 2018-2021 period by using the analysis of the Revenue Budget Variance Analysis, the Decentralization Degree Ratio, the Effectiveness Ratio of Regional Original Revenue, the Regional Expenditure Efficiency Ratio, and the Regional Expenditure Harmony Ratio. This research method uses a quantitative descriptive approach. The analysis method is carried out by assessing or measuring local government financial performance which is measured based on: Income Variance Analysis, Decentralization Degree Ratio, Regional Expenditure Efficiency Ratio, Effectiveness Ratio of Regional Original Revenue, Regional Expenditure Harmony Ratio. The results of research on financial performance at the North Sumatra Province Environmental Service show that 1) Realization of the revenue budget in 2021 is unfavorable but is good if viewed from the whole during the 2018-2021 period. 2) from the Decentralization Degree, showing a ratio of 100%, it can be concluded that the ratio is classified as very good. 3) Regional Expenditure Financial Performance with an average percentage ratio of 90.15% which is on a less efficient interval scale. 4) The PAD Effectiveness Ratio is said to be effective with an average percentage ratio of 120.43% which is included in the very Effective criteria. 5) Shopping Harmony can be concluded that the average percentage ratio is 83,02%.
This study aimed to analyze the effect the financial ability of Semarang City in order to support the implementation of regional autonomy, base on Semarang Budget Realization Reported the period of 2009 -2013. A descriptive comparative analysis used to measure the performance of regional financial management and the independence level of Semarang, consist of Regional Financial Independence Ratio, Degree of Decentralization Ratio, Local Native Income (PAD), effectiveness Ratio, and the Harmony Expenditure Ratio. Based on the analysis that has been obtained, the following results: from the analysis of the ratio of the degree of decentralization can be explained that the average ratio of the degree of decentralization is 25,87% of which is in the internal level of level 25%-50%, means already have a good ability to finance region development. Average Regional Financial Capabilities (KKD) ratio is 37.79% which is in the interval 25 % -50 % means that central government intervention has begun to decrease, because the region is considered a little more able to implement region autonomy. From the analysis of PAD effectiveness is more than 100%, it can be concluded that the overall performance of local financial management and the degree of independence of Semarang area continued to improve. It can be seen from some of the financial performance ratio is the ratio of the area of financial independence, the ratio of degrees decentralization, effectiveness ratio and the ratio continues to increase harmony and good effect on the autonomy of the region
Since public sector reform initiatives, public accountability and transparency have advanced democracy and good governance on managing state finances. State financial management mechanism involves regional policies and fiscal decentralization trend in the devolution of responsibility for empowerment from central to local units of governments, but the governance face challenges to effectively manage and control the use of public funds that best meet citizen’s needs. This study determines the effect of public accountability and transparency on the management of state finances in Indonesia, as well as the extent to which public accountability and transparency affect the management of state finances. Based on a descriptive quantitative case-oriented research approach, 60 survey interviews are collected and analyzed with multiple linear regression analysis techniques. This study concludes that Public Accountability partially has a significant effect on the Financial Management Mechanism. On the other hand, partially public transparency has no significant effect on the State Financial Management Mechanism. Cumulatively, some aspects of Public Accountability and Transparency have a significant effect on the State Financial Management Mechanism. If unaccountability in decentralised administrative model prevails, problem of ineffective policy output may persist to impair sustainable finance and public values for good governance in times of covid-19 crisis related society.
This study aims to analyze the institutional arrangement of the Government of the Special Region of Yogyakarta (DIY). DIY as one of the autonomous regions certainly has institutional features. Institution becomes the main foundation in carrying out regional development. Institutional harmonization becomes a very important factor for regional apparatus organizations in providing public services. This research uses descriptive qualitative and explorative research methods. The results of this study that the institutional arrangement of the DIY Government accommodates 3 (three) institutional components, namely potential capacity, carrying capacity, and absorptive capacity. The DIY local government institution at the same time put forward the realization of asymmetric decentralization, the regional government of DIY taking into account the form and composition of the original government shown by the existence of Parampara Praja and Paninradya Kaistimewan. The special features of the DIY local government have positive implications in maintaining the spirit of local wisdom held by the Kingdom of Yogyakarta.
Since 1946, Indonesia has adopted a decentralization policy that impacts the transfer of authority to regulate and administer government affairs in the regions, followed by financing to manage these affairs. In a unitary state, the power source, both in terms of financial management and administrative power, rests with the central government. This study uses a descriptive qualitative method to explain the history of the development of authority and financial balance policies in Indonesia and the meaning of decentralization policies in Indonesia. Quantitative descriptive was used to analyze data regarding the implementation of regional government affairs, personnel expenditure ratios, comparison of central and regional expenditures, and other data related to burdens and revenues between the center and the regions. This study found that the central government has recognized regional independence through income sources managed by themselves and reduced transfer funds that aim to cover the lack of regional revenues. The provision of sources of revenue from the central government to the regions is not proportional to the ratio of the burden given. The results of this study indicate that the load is inversely related to the budgetary capacity between the government and local governments. The imbalance between the workload and the source of revenue received by the region is the low ability of the region to provide basic services that are the authority.
Politeknik Negeri Bali, N K C Wandari, K A B Wicaksana, Politeknik Negeri Bali · 6 authors
This research sought to assess the performance of regional financial management in Gianyar Regency during 2016-2020, as measured by the degree of fiscal decentralization ratio, the regional financial dependence ratio, the Original Regional Government Revenue effectiveness ratio, the regional financial efficiency ratio, and the regional expenditure compatibility ratio. In addition, this research also determined the regional financial capacity of Gianyar Regency, measured through the calculation of Share and Growth, the mapping of regional financial capacity, and the index of regional financial capacity. The research results revealed that the financial management performance of Gianyar Regency during 2016-2020 on average was in a bad condition. It can be seen from its low regional autonomy and its high dependency on the central government. In addition, the regional government has not been able to streamline the regional finances in which regional expenditures were greater than regional revenues. The distribution of regional budget in Gianyar Regency has not been evenly allocated so that the performance regional financial management was at worse state. However, viewed from the level of regional financial capacity, Gianyar Regency has very good potential, obstructed by its low level of Original Regional Government Revenue use to finance regional expenditures.
Universitas Ahmad Dahlan, Indonesia, Lestari Sukarniati, Nurul Azizah Az zakiyyah, Universitas Ahmad Dahlan, Indonesia
Region financial independence indicates the ability of a government to finance its activities, the cost of development, and services to people concerning decentralization purposes. The objective of the research is to identify the level of financial independence of each regency and city in DIY Province, in which each promotes different potency. The quantitative method is employed in this research by using secondary data. Furthermore, the data are analyzed using the Panel Data method. The result demonstrates that in general the financial management in DIY Province is considered fair and resulted in the quite high financial condition index value.
Law Number 22 of 1999 on Local Government has changed the system of government in Indonesia to become decentralized, including those related to finance. The purpose of this study is to see the trend of financial independence in the districts/cities in West Papua Province. The measure used to assess this is the ratio of regional financial effectiveness and the degree of fiscal independence. The data used is sourced from the Directorate General of Fiscal Balance, Ministry of Finance of the Republic of Indonesia period 2010 – 2019. The results of the analysis show that the financial effectiveness ratio of districts/cities in West Papua Province has been very effective. However, the degree of fiscal independence shows the opposite condition, where all districts/cities in West Papua Province are still in “belum mandiri” category.
Local authorities in Madagascar do not have yet a budget simulation model. Budgetary rationalization makes it possible to effectively predict and manage budget implementation. However, the local finance budget is always based on an ex-ante situation without taking into account the economic, political, the behaviour of the elected official, the electoral cycle, and performance indicators. Therefore, a numerical simulation (use in many developed countries) from computer tools or the use of artificial intelligence or AI that can effectively predict a local finance budget. Predictive analyses help to better identify the fundamental characteristics of the budget elements, in order to model them and anticipate the executions as best as possible. Rather, it is a practice that relies on statistical tools, but also on the search for correlation and regressions that are methods used to discover functional models, connecting a variable to be explained and a set of explanatory variables. The prediction of a primitive budget then consists of using the different models from a simulation in Prex-B-developed software for the budget of local finances or decentralized territorial collectivities.
The research is to prove that there was a fiscal illusion in district government spending in East Java in 2016-2018, and to prove that the fiscal illusion that occurred in government spending had an influence on the economic growth of each district. In fiscal decentralization in the era of regional autonomy, there is a phenomenon that each regional government still depends on financing activities from government transfer funds rather than receiving local revenue to finance regional expenditures. Even though government spending has increased every year, it is not in balance with economic growth. In this study it can be proven that there is a fiscal illusion in district government spending in East Java 2016-2018, this fiscal illusion affects the economic growth of each region. To increase economic growth and reduce regional unemployment rates, it is necessary to make efforts to increase capacity and fiscal independence as well as increase the labor force participation rate.Keywords: fiscal illusion, government spending, local government, economic growth, East Java.
The purpose of this study is to determine the differences in the level of regional financial independence of the Trenggalek Regency Government for the period 2014-2016 and the period 2017-2019. This research uses comparative research. The type of data in this study is secondary data with documentation data collection techniques. The data source used is sourced from the Directorate General of Fiscal Balance's website at the Central and Regional Government Offices (DJPK). The data analysis technique used in this research is the descriptive analysis technique. The type of data in this study is secondary data with documentation data collection techniques. The results show that the ratio level of the degree of fiscal decentralization in Trenggalek was in a low category. It happened in the period 2014-2016 and the period 2017-2019. The value of regional financial dependency ratios is in the high category in the 2014-2016 and 2017-2019 periods. The value of the regional financial independence ratio is in the poor category in the 2014-2016 period, and the 2017-2019 period is in the low and medium category. The effectiveness ratio's value in the practical category in the 2014-2016 period and the 2017-2019 period.
The purpose of this research is to find out the effect of remaining more budget financing and fiscal decentralization on capital expenditure in districts/cities in the Region West Java period of 2015-2019. This research used secondary data in the form from Realized Local Government Budget obtained from Directorate General of Regional Fiscal Balance (DJPK).The population of this research is the report on government budget realization of districts/cities in West Java period of 2015-2019. All data is collected by sampling quota. The sample amounted to 105 financia report data. The analytical methods used in this research are the descriptive and statistic method of regression analysis of data panels including testing of hypotheses through F test, t-test and coefficient of determination (R2). The test model selection in this research is Fixed Effect. Based on the results of this research shows that remaining more budget financing and fiscal decentralization are simultaneously affecting capital expenditure. Partial remaining more budget financing variables and fiscal decentralization have a positive and significant impact on capital expenditure.Keywords: Remaining More Budget Financing, Fiscal Decentralization, , Capital Expenditure.
The purpose of this research is to investigate the relationship between fiscal balance funds and human development and also to see the behavior of budget use in the Kalimantan Island. This research uses panel data regression analysis using a sample of four provinces in Kalimantan Island with the observation year 2010-2016. The results of the study found partially the General Allocation Fund and the Special Allocation Fund had a positive influence on human development on the Kalimantan Island. Meanwhile, the Revenue Sharing Fund has no effect on human development on the Kalimantan Island. This is because the Kalimantan Island Revenue Sharing Fund experienced a significant decline in 2014-2016 and the use of the Revenue Sharing Fund from Natural Resources is limited by regulation on environmental sustainability. Simultaneously, fiscal balancing funds, namely General Allocation Funds, Special Allocation Funds, and Revenue Sharing Funds has an influence on human development on the Kalimantan Island. This research found that the implementation of decentralization in Indonesia made local governments tend to rely on Fiscal Balance Funds to finance human development programs in the regions.
This study aims to examine the effect of partially balanced funds, local tax revenues and regional expenditure on the financial performance of local governments in the Indonesian province. This study was conducted at the Directorate General of Fiscal Balance (DJPK) Ministry of Finance in the period 2012-2018 through the official website www.djpk.kemenkeu.go.id. Regional financial performance is measured using the ratio of fiscal decentralization by comparing the Original Regional Revenue and Total Revenue, while the balancing fund, Regional Tax Revenue and Regional expenditure are calculated based on each of the realization of these variables. The population used in this study is all provinces in Indonesia during the 2012-2018 period as many as 34 provinces. Sampling uses the Purposive Sampling method with the criteria of the provincial government which has an official website of the local government and which publishes the Budget Realization Report (LRA) so that a sample of 14 provinces is obtained over a 7-year period. The results showed that simultaneous balancing funds, local tax revenues, and regional spending affect the financial performance of provincial government in Indonesia. Whereas partially shows that regional tax revenue and regional expenditure affect the financial performance of the provincial government in Indonesia while the balance fund does not affect the financial performance of the provincial government in Indonesia. Future studies can develop the results of this study by adding other variables such as regional retribution, size and wealth, and can replace financial performance measurements with efficiency ratios or regional independence ratios
This study aims to analyze improve of the financial performance local government in Sumatera island period 2012-2016 measured through the calculating the degrees decentralization ratio,dependency ratio, local finance activity ratio, effectiveness ratio, efficiency ratio, the ratio of harmony and growth ratio. This research used the descriptive approach.The sample in this research was local government Sumatera island period 2012-2016. Method of data collection had purposive sampling technique. The analysis data using descriptive analysis and trend analysis to saw increase of financial performance.The result of this study indicate that performance of the financial local government in Sumatera island having an increase seen from degrees decentralization ratio,dependent ratio, local finance activity ratio,the ratio of harmony, and growth expenditure ratio. While the effectiveness ratio, efficiency ratio, and growth income ratio show fluctuations in the performance of the financial local government in Sumatera island.
This study aims to see whether there are differences in local government financial performance before and after the stipulation of Kepmendagri No.29 of 2002. This research was conducted in 12 districts/cities in Aceh which had not been expanded until 2001. The data used were secondary data with data collection techniques. documentation derived from the BPS in the Province of Aceh and other supporting sources. The variables used are the ratio of financial ability, ability to mobilize, level of dependency, and fiscal decentralization. Data were analyzed using parametric statistics which are different tests for two paired samples (paired sample t-test). The results showed that the financial performance of local governments in the form of financing ability, mobilization ability, level of dependency before the stipulation of Kepmendagri No. 29 of 2002 was not different from after the stipulation of Kepmendagri No. 29 of 2002, whereas in the form of fiscal decentralization before the stipulation of Kepmendagri No. 29 of 2002 is different from after the stipulation of Kepmendagri No. 29 of 2002.
Purpose - This research aims to analyze the influence of the Revenue Sharing Fund, General Allocation Fund, Special Allocation Fund, and Village Fund on the level of Human Development Index in 18 Districts in West Java Province in 2015-2018.Method - The data used in this study were secondary. The Revenue Sharing Fund, General Allocation Fund, Special Allocation Fund, and Village Fund are obtained from the Central Government Financial Report from the Ministry of Finance. Meanwhile, the human development index data were obtained from the Central Bureau of Statistics (BPS). The data were analyzed using multiple linear regressions. Result - The results showed that the revenue sharing fund had a positive and significant effect on the Human Development Index, the general allocation fund had a negative and significant effect on the human development index, the special allocation fund had a positive but insignificant effect on the human development index, while the village fund had a negative and insignificant effect on the human development index.Implication - This study provides information that in the implementation of effective transfers of funds in the process of receiving or transferring funds from provinces to regions, certainty and clarity regarding expenditure burdens or authority is needed which is a prerequisite for the successful implementation of fiscal decentralization policies through fund transfers so that an increase in the human development index can be achieved.Originality - By using secondary data from a sample of districts and cities in West Java, this study illustrates how the influence of Transfer Funds to Regions and Village Funds in increasing the Human Development Index.
Income inequality is one of the problems that must be addressed immediately because it can have an impact on economic inefficiency and weaken the stability of social solidarity. One of the policies that can reduce income inequality is fiscal decentralization implementation. Specifically, this study aimed to analyze the effect of fiscal decentralization on income inequality in regencies and cities in West Java. The model used in this research was a fixed effect panel data regression. Fiscal decentralization was measured by adding the total regional revenue (Pendapatan Asli Daerah/PAD) to revenue sharing (Dana Bagi Hasil /DBH) and divided by the total regency and city expenditure. Income inequality was measured by using the Gini Ratio. The results indicated that fiscal decentralization could reduce income inequality in regencies and cities in West Java. The reason was that, through decentralization, local government could manage their finance and affect the welfare level. In addition, local government could also implement certain policies to increase the potential of each region.
Poverty in Indonesia experiences a declining trend, both in number and percentage, but Pa - pua Province is not the case. The number of poor people in Papua has increased and the position of poverty levels is higher than the national level. Heterogeneity of poverty occurs in the districts and cities of Papua. The purpose of this study is to analyze the determinants of poverty in regencies and cities in Papua Province. Determinants of poverty include economic growth, human development, decentralization, and regional status. This research uses quantitative methodology with multiple linear regression analysis cross-section analysis tools. The findings of this study are an increase in economic performance which is proxied by economic growth that can reduce poverty levels in districts and cities in Papua Province. Other findings, show an increase in the quality of human resources as a form of human development in proxy with the human development index is also able to reduce poverty levels. The results of this study also show that regional status and fiscal decentralization have not been able to significantly influence poverty reduction. Government policies need to be for - med in forming partnerships with the public and the private sector in improving economic performance and human development in order to improve the welfare of the community. In addition, without ignoring the decentralization policy, the management of potential resources needs to be optimized to increase the ability and independence of the region in financing regional expenditure, particularly in poverty alleviation programs. Keywords : Poverty; Economic Growth; Human Development; Decentralization; Regional Status JEL Classification :I32;015;040;R11