Abstract
Fiscal decentralization aims to improve regional finance independency and reduce the fiscal dependency of central goverment. However, in practice, there are still many areas that rely on the assistance central finance for their regional development. The purpose of this study was to determine the level of development of local independence and financial ability as well as effects on economic growth in regency and city in the Sumatera selatan Province year 2008-2018.this research takes place in regency and city in the sumatera selatan province. While the data used in this research is financial data and economic growth 2008-2018 in the sumatera selatan province. Methods of data analysis in this study there are two kinds, the first is the ratio of local independence and the ratio of local financial ability. Secondly, to investigate the influence of independent variables on the dependent variable used multiple linear regression analysis tool. According to analysis result have been obtained as follows. The ratio of local financial independence of regions indicated by the ratio of the average rate so low, still be between 0%-25%. According the ratio of local financial ability of regions averages between 0%-10% which is low. Local self-reliance has positive and significant on economic growth. Regional financial capability have positive but not significant effect on economic growth in regency and city in the sumatera selatan province.
Highlights
Fiscal decentralization aims to improve regional finance independency and reduce the fiscal dependency of central goverment
In practice, there are still many areas that rely on the assistance central finance for their regional development
The purpose of this study was to determine the level of development of local independence and financial ability as well as effects on economic growth in regency and city in the Sumatera selatan Province year 2008-2018.this research takes place in regency and city in the sumatera selatan province
Summary
Dari Tabel 1.1 di atas, dapat dilihat perkembangan PAD Kabupaten/ Kota di Provinsi Sumatera Selatan periode 2010-2017, dimana selalu terjadi peningkatan PAD setiap tahunnya untuk Provinsi Sumatera Selatan. Pembangunan ini memerlukan biaya yang tidak sedikit sehingga peningkatan pembangunan ini akan meningkatkan pengeluaran pemerintah. Untuk dapat memenuhi pengeluaran pemerintah, kabupaten/kota tersebut harus dapat menggali potensi Pendapatan Asli Daerah (PAD) dan tidak bisa hanya dengan mengandalkan dana perimbangan dari pusat. Peningkatan pengeluaran pemerintah akan meningkatkan pertumbuhan ekonomi suatu wilayah. Pelaksanaan pembangunan menghadapi beberapa kendala, diantaranya perbedaan kualitas sumber daya manusia, keterbatasan sumber daya alam dan sumber dana pembangunan akan memperbesar ketimpangan tingkat kemandirian keuangan daerah antar kabupaten/kota di Sumatera Selatan. Bagaimana pengaruh kemandirian keuangan daerah terhadap pertumbuhan ekonomi. B. Bagaimana pengaruh kemampuan keuangan daerah terhadap pertumbuhan ekonomi. C. Bagaimana pengaruh kemandirian dan kemampuan keuangan daerah terhadap pertumbuhan ekonomi Kabupaten/Kota di Sumatera Selatan secara simultan?
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