Abstract
The study aims to examine and analyze the effect of fiscal stress and legislative size on expenditure change in the district or city of West Java Province. The research method used is descriptive method and verification method. Data collection techniques are carried out through secondary data obtained from Supreme Audit Istitution (BPK). The population of this study is all regencies and cities in West Java Province in the 2016-2018 fiscal year. The number of regencies and cities in West Java Province in the 2016-2018 fiscal year was 27. This research sample selection method uses Non Probability Sampling using saturated sampling with a total of 81 districts and cities. The results showed that fiscal stress negatively affected expenditure change, while the influence of the legislature size had a positive effect on expenditure change.
Highlights
Agency theory arises because of the relationship between the agent and the principal
Districts/Cities in West Java Province in the 2016-2018 Fiscal Year had an average fiscal stress of 98.44% with Vulnerable criteria. This means that districts/cities in West Java Province in the 2016-2018 Fiscal Year were unable to achieve the PAD target so that the government experienced fiscal pressure
Fiscal stress that occurred in Regencies/Cities in West Java Province during the 2016-2018 Fiscal Year, has a vulnerable category, meaning that the Government tends not to achieve the PAD target
Summary
Agency theory arises because of the relationship between the agent and the principal. The government that acts as an agent or manager of government must determine certain strategies in order to provide the best service to the public. Those who act as principals are the people who are represented by the DPRD. The DPRD, which acts to oversee the running of the government, must ensure that the budget is used effectively and efficiently. With this difference in interests, the process of preparing and changing the budget, especially in expenditure posts, often causes debate between the government and the DPRD. High fiscal stress will trigger changes in spending or expenditure changes due to spending growth from the previous year
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