Abstract

This research aims to (1) examine the level of fiscal decentralization degrees in Magelang Regency, (2) examine the level of financial independence in Magelang Regency, (3) examine the level of regional expenditure productivity of Magelang Regency, (4) examine the relationship of decentralization degrees and independence of fiscal with regional expenditure productivity in Magelang Regency. This research uses secondary data in the form of time series from 2016-2020 consisting of the realization of Magelang Regency APBD (Regional Revenue and Expenditure Budget), the realization of Magelang Regency PDRB (Local Gross Domestic Product (GDP)). In analyzing this study using the analysis of the Degree of Fiscal Decentralization (DDF), the analysis of the Degree of Fiscal Independence (DKF), the analysis of Regional Expenditure Productivity (PBD), and the Pearson Correlation analysis. The results showed that DDF value of 10,62, DKF value of 12,18, and PBD of 18,38, all three calculations were in low category. Therefore, the findings shows that there is a negative relationship that is relatively strong and real.

Highlights

  • Regional development serves as a measure for achieving national development

  • Local governments have sought to maximize regional potential since the introduction of regional autonomy in order to fulfill the goals of regional autonomy, namely regional independence

  • The degree of fiscal decentralization is a barometer of the ability of local governments in their finances to finance their regional expenditures, based on this it can be seen that the amount of financial collection ability originating from the region itself can be seen

Read more

Summary

Introduction

Regional development serves as a measure for achieving national development This allows the government to run its own household in accordance with relevant law number 12 of 2008, which specifies that the government would operate under the decentralization principle. It is recognized that when a region's Regional Original Income rises, the Regional Government's reliance on the Central Government in its Regional Revenue and Expenditure Budget (hereinafter referred to as APBD) declines. This becomes a process of continuous change toward progress in the economic field by includes realizing community welfare in order to assist and improve economic development. Economic development become of greater concern in the regional context because it can encourage the positive achievement of goals through the process of managing existing resources and forming a partnership between local governments and the private sector to create new jobs, as well as stimulate the development of economic activities in the region

Objectives
Discussion
Conclusion
Full Text
Published version (Free)

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call