Abstract

This study investigates whether there are differences in local government units such as the provinces, municipalities, and districts as regards how they are affected by fiscal risks. This study used the financial data of all the local governments in Indonesia, which consists of 34 provinces, 93 municipalities, and 415 districts. The method for analyzing the data was the Kruskal-Wallis test. The study demonstrated that there were no differences in the fiscal risk of local government revenue and local government financing among the local government units in Indonesia. However, for the fiscal risk of local government spending, there are differences between local governments in Indonesia. The average ranking of fiscal risk to local government spending from the lowest to highest is district, municipality, and province.

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