Fund Balance Research Articles

Penelusuran Fly Paper Effect pada Belanja Operasi dan Belanja Modal Pemerintah Daerah Kabupaten/Kota di Provinsi Jawa Tengah

This research examine the flypaper effects as one as the indicator of succes of decentralisations . The research analyze to find out wether Balancing Fund (especially General Fund Transfer) and The locally-generated revenur influence the Operational Expenditure and Capital Expenditure in the period of 2018-2020. The resources of data used are budget realization report of 35 Regency/City Regional Government Province of Central Java that was published at the Directorate General of Financial Balance Ministry of Finance. The method used in this study is a purposive sampling method with panel data which is used the combination period/years of 2018-2020 time series data and used the cross section data of 35 Regency/City Regional Governments in Province of Central Java. The result of research prove that there has been a flypaper effect on the Balancing Fund (especially General Fund Transfer) on Operational Expenditures at 35 Regency/City Regional Government in Province of Central Java. The Balancing Fund and Locally Generated Revenue each have a significant influence on Operational Expenditures. The results of the second hypothesis testing prove that the The Balancing Fund and Locally Generated Revenue have no effect on Capitall Exspenditures .

Analisis Pengaruh Belanja Daerah, DBH dan DAU terhadap Pendapatan Asli Daerah di Provinsi Jawa Tengah

Regional autonomy is a policy in which the government system shifts from a centralized system to a decentralized one. The increase in the Balancing Fund is expected to be followed by an increase in regional fiscal independence in the form of a significant increase in Local Revenue (PAD) as a reflection of regional independence. The purpose of this study was to determine the effect of Regional Expenditure, Revenue Sharing Funds (DBH), General Allocation Funds (DAU) on Regional Original Revenues in Central Java Province. This research uses a quantitative approach with a regression test. The results showed that the allocation of Regional Expenditures and Revenue Sharing Funds have a positive effect on Regional Original Revenues, while the General Allocation Funds have a negative effect on Regional Original Revenues.

Research on the optimization of financing scheme of long-term care insurance in China based on system dynamics simulation.

ObjectiveThe aging population in China highlights the significance of long-term care insurance (LTCI). This study provides policy suggestions for China to establish a sustainable LTCI financing mechanism by predicting the trend of funds balance and screening the appropriate financing scheme.MethodA system dynamics model (SDM) of LTCI funds was constructed by clarifying the current situation and its main influencing factors of revenue and expenditure of LTCI funds in China. Also, through literature research and expert consultation, we found the intervention goals and predicted the changing trend of LTCI fund balance from 2020 to 2050 under different intervention schemes.ResultsThe SDM of LTCI financing passes the dimensional consistency test, structural test, and historical test. Therefore, it can objectively reflect the structure and behavior of the financing system. It is found that the factors affecting the revenue and expenditure system of LTCI funds mainly include economic factors, demographic factors, and other factors. By adjusting three intervention indicators, namely, individual payment rate, reimbursement proportion, and severe disability rate, this study produces 45 financing combination schemes. By comparing the changing trend of LTCI fund balance under different intervention schemes, according to the screening principle, five better financing schemes are finally selected. These five financing schemes have no deficit and excessive balance in the forecast period, which is in line with the principle of sustainability. It can provide a reference for the selection of financing schemes in pilot areas.DiscussionThis study has optimized the policy of the LTCI financing mechanism, determined the suitable LTCI participants, financing channels and levels, and screened out the suitable LTCI financing policy optimization scheme for China. By appropriately increasing the individual payment rate, strengthening the disability intervention of the elderly, formulating scientific and objective disability evaluation standards, and finally establishing a dynamic financing adjustment mechanism of LTCI. This study can provide a basis for the scientific formulation of the LTCI financing mechanism in China and provide a reference for developing countries to establish a sustainable LTCI.

The Effect of Balanced Funds and Local Own-Source Revenue on Regional Expenditure and Economic Growth Before The COVID-19 Pandemic in Samarinda City

The aims of this study are to analyze the effect of balancing funds and local own-source revenue on regional expenditure and economic growth before the covid-19 pandemic in Samarinda City. The data used in this study is secondary data, which was obtained in 2014–2019. The analytical tool used is path analysis with IBM-SPSS Version 24. Research results showing that the Balancing Fund take effect direct and not significant to regional expanditure, strengthened score significance 0.356 > 0.05, with score influence direct of -0.318. Balancing Fund take effect direct and not significant to economic growth, strengthened score significance 0.127 > 0.05 with score influence direct of -0.390. Local own-source revenuehas an effect direct and significant to Regional Expenditure, strengthened score significance 0.031 < 0.05 with score influence direct of 1,126. Local own-source revenue has an effect direct and significant to Economic Growth, strengthened score significance 0.027 < 0.05 with score influence direct amounted to 1,879. Influential Regional expanditure direct and not significant to Economic Growth, strengthened score significance 0.106 > 0.05 with score influence direct of -0.728. Local Own-source revenue has no direct and insignificant effect on Economic Growth through Regional Expenditures with the effect of a score of 0.231. Balancing Fund has no direct and not significant to Economic Growth through Regional expenditure with score influence of -0.819.

BUMD Contribution as a Moderation of Association Between Revenue and Expenditure with Regional Financial Independence

This study aims to assess and analyze local revenue, balance funds, capital expenditures, and regional financial independence with the contribution of BUMD as a moderating variable. This research uses quantitative methods with a descriptive approach. The population in this study was the District or City Government in the West Java Province of the Company in 2014-2019. The sampling technique was using the purposive sampling method. The sample in this study were districts or cities that still had a low level of independence as many as 72 sample units. Data analysis used moderate regression analysis (MRA) and Pearson correlation. The results showed that local revenue and capital expenditure had a positive correlation with regional financial independence and balance funds had a negative correlation with regional financial independence. Then the moderation regression analysis shows that the contribution of BUMD moderate negative towards regional financial independence, the contribution of BUMD results moderate positive towards regional financial independence. Meanwhile, the contribution of BUMD does not moderate the balance of funds towards regional financial independence.

A Comparative Analysis of Equity and Balanced Unit Trust Funds before and During COVID-19 Pandemic

This paper aims to examine the comparative performance of equity and balanced unit trust funds before and during the COVID-19 pandemic, which is from January 2014 to December 2018 and January 2019 to December 2020. To achieve the aforementioned study objective, the study conducted by using three model measures, Sharpe, Treynor and Jensen’s alpha Index. The findings of this study carry out the COVID-19 pandemic does not affect the performance of equity and balanced unit trust funds. Investors gain a return from equity funds and balanced funds into a well-diversified domestic investment portfolio. To be concluded that unit trust funds help investors to put their money in different baskets of investment avenues to minimize the risk of loss of money, especially during a turbulent market. Future studies may investigate the features of fixed-income-based unit trusts, such as government and corporate bonds with commercial and social goals and as a mechanism for promoting environmental, social and governance (ESG) considerations towards establishing a low-carbon economy.

Does Fiscal Decentralization Affect Poverty? An Empirical Study

The Poverty percentage in Central Java ranked two throughout Java Island after DI Yogyakarta Province. It surely causes gaps and inequality between regions in Central Java Province. This study attempted to analyze the effects of fiscal decentralization, fiscal balance fund, and economic growth on the poverty in 35 regencies/ cities in Central Java Province within 2016-2020. By using a quantitative approach, this study used a panel analysis with a Fixed Effect Model (FEM) method. Based on the results of panel data regression analysis results, fiscal decentralization and fiscal balance fund had no relationship with the poverty in Central Java. On the other hand, economic growth had positive and significant effects. High economic growth will reduce poverty rate when the economic activities carried out are padat karya which aims at absorbing workforce. High workforce absorption will reduce the poverty rate.

Improving the Accuracy of Forecasting the TSA Daily Budgetary Fund Balance Based on Wavelet Packet Transforms

Improving the accuracy of cash flow forecasting in the TSA is the key to fulfilling government payment obligations, minimizing the cost of maintaining the cash reserve, providing the absence of outstanding debt accumulation, and ensuring investment in various financial instruments to obtain additional income. The article describes a method for improving the accuracy of forecasting a time series composed of daily budgetary fund balances in the TSA, based on its preliminary decomposition using a discrete wavelet packet transform of the Daubechies family. This makes it possible to increase the accuracy of traditional forecasting methods from 80% to more than 96%. The decomposition level varied from one to eight to minimize the mean absolute error and improve the forecasting accuracy. Calculations of statistical tests for adequacy confirm the effectiveness of the proposed method for improving forecasting accuracy. The scientific novelty of the proposed method for improving the forecasting accuracy of time series from daily budgetary fund balances in the TSA lies in proving the need for preliminary timeseries decomposition and subsequent construction of forecasts for the obtained parts, resulting in high forecasting accuracy. The result differs significantly from traditional econometric methods (ARIMA/SARIMA), characterized by a much lower accuracy (50–80%) and a decrease in forecasting accuracy with an increase in the forecast horizon. This article is novel, as it forms a new approach to solving the problem of increasing the efficiency of using budgetary funds, associated with improving the accuracy of forecasting daily budgetary fund balance in the TSA.

Analisis Determinan Yang Mempengaruhi Pengalokasian Belanja Modal Pada Kabupaten di Sumatera Utara

This study aims to determine the effect of regional original income, balancing funds, on the allocation of capital expenditures in districts/cities of North Sumatra province. This research method uses descriptive and quantitative data. The sample of this research is Regency/City APBD data in North Sumatra in 2018-2020. The results of the study indicate that the independent variables of Regional Original Revenue, Balancing Fund, Remaining Budget Financing simultaneously (together) affect the allocation of Capital Expenditures. Regency in North Sumatra Province. While the results of the coefficient of determination (R2) indicate that the analytical model used in this study is able to explain that all independent variables are Regional Original Income, Balancing Funds, Remaining Budget Financing (SilPA) on Capital Expenditure Allocation of Districts/Cities of North Sumatra Province, which is equal to 54%, and the remaining 46% is influenced by other factors outside of the regression model.

ANALISIS DINAMIS DAMPAK DESENTRALISASI FISKAL TERHADAP EFISIENSI BELANJA KESEHATAN DAN KESEJAHTERAAN: STUDI KASUS KABUPATEN/KOTA DI SULAWESI SELATAN

This study aims to analyze: (i) the level of spending efficiency of health function; (ii) the impact of fiscal decentralization on the the level of spending efficiency of health function in the region; and (iii) the impact of the level of spending efficiency of health function on the level of welfare in the region. The research used quantitative approach with Data Envelopment Analysis (DEA) and Dinamic Generalized Method of Moment (DGMM) analysis techniques. The results showed that the realization and utilization of health function expenditures in the aggregate in South Sulawesi Province is quite good, although the expenditure is still more allocated to government bureaucracy spending. However, the results of efficiency testing with DEA method showed that in most regencies/cities in South Sulawesi Province, the realization and utilization of spending is relatively less efficient. From the results of dynamic panel data testing (DGMM), it was found that fiscal centralization in the form of policies on Regional Native Income has a negative and significant impact on the efficiency level of health function expenditures, while fiscal decentralization policies in the form of Balance Funds, also has a negative but insignificant effect. The increase in the efficiency of health spending will be significantly followed by an increase in the welfare of the community. Meanwhile, fiscal decentralization policy in the form of Regional Native Income and Balance Fund, also positively affects welfare, but is limited (insignificant). To improve the efficiency and quality of public service delivery, the district / city government in South Sulawesi Province must meet the mandatory spending of the health budget in each drafting of the Budget.

Risk Analysis of Pension Fund Investment Choices

We provide a comprehensive and more consistent approach to analyse and compare the risk‐return relationships of Australian superannuation investment options for the period January 1990 to December 2016. In estimating the risk profiles of the investment options, we allow for the movement of the asset classes over time by employing a varying coefficient panel estimation technique. We find that while risk increases across different investment options from moderate to aggressive options, using different percentages of identifying a balanced fund does not impact the long‐term risk measurement. We equally find that the risk‐return relationships of investment options are not sensitive to the modelling framework, except for the crisis analysis, in which the Fama‐French five‐factor model provides greater sensitivity.

TINJAUAN YURIDIS TERHADAP TINDAK PIDANA PENYELEWENGAN DANA DESA

In accordance with Article 72 of Law 6 of 2014 concerning Rural Areas, village income sourced from the APBN or village funds comes from central spending by increasing the efficiency and equity of village programs. The amount of the budget allocation that is allocated directly to the village is set at 10%. the amount paid to the area (above). In addition, Law Number 6 of 2014 also strengthens the allocation of village funds (ADD) from district/city balancing funds.
 Given the enormous power of the village head in administering village government based on the Decree of the Government of the Republic of Indonesia Number 72 of 2005 Article 14, it is necessary to review and balance the administration of village governance. The agency authorized to supervise village heads on village household expenditures is the BPD. The role of the village council as the controlling body of the village government requires responsibility and ability in carrying out its duties. It is also clear that according to the Decree of the Government of the Republic of Indonesia Number 72 of 2005, the BPD is an institution that embodies democracy under the leadership of the village government as part of the village administration with the village head.

The Digitalized Zakat Management System in Malaysia and the Way Forward

The development of technology and innovation has a significant influence on the current financial markets. Introducing new business models and transferring from traditional markets to the digital markets through those technologies are some ways of digital transformation. Zakat system has been a great part of Islamic economics and the financial system which has to embrace digitalization to be compatible with the current digital era. This research aims to address the current status of digitalization about the zakat management system in Malaysia and to explore the necessary improvement in embracing the digitalization by the zakat institutions. The research adopts a qualitative research approach where it collects the data from various sources such as books, journals, conference papers, and other relevant websites. To analyze the data, the research employs a descriptive and exploratory research technique. This study finds that despite having websites by the zakat institutions in Malaysia, the zakat system has a lack of data set of aṣnāf and proper data for the collected and distributed funds. Digital transformation is needed to observe the check and balance of the zakat funds’ collection and distribution. In addition, human development through zakat funds needs to embrace more development through digitalization. Moreover, the zakat institutions are encouraged to advance their readiness and understanding of technologies and innovation to embrace digital assets and their zakat-ability.

Managing the medical resources of a national insurance program: lessons based on China’s NCMS

BackgroundThe security of medical insurance fund is very important to health equity. In China, the expenditure of medical insurance fund has increased sharply year after year, and the balance of local medical insurance fund is difficult to sustain. To realize the equitable distribution of the medical insurance burden, the central government has to continuously increase transfer payments, which causes regional unfairness in the distribution of central financial resources. This paper explores the influence of central transfer payments on the balance of medical insurance fund, influential mechanisms, and the strategic behavior of local governments.MethodsFirst, we constructed a dynamic game model between central government and local governments and analyzed the mechanism of central transfer payments affecting the balance of local medical insurance fund. Then, based on the provincial panel data of 28 provincial administrative regions in China from 2004 to 2014, an empirical test was made. The spatial regression model was constructed, and the transfer payments obtained by neighboring provinces in the previous year were taken as instrumental variables.ResultsCentral transfer payments led to strategic behaviors by local governments that resulted in increased local health insurance fund expenditures and lower balance rates. Moreover, the central transfer payments demonstrated “path dependence”. Central transfer payments had a significant negative influence on the local NCMS fund balance rate. The local government subsidy and per capita GDP had a significant positive impact on the local NCMS fund balance rate. The obtained transfer payments of local governments had a significant space correlation. This study based on NCMS data remains valid.ConclusionsCentral transfer payments induced the strategic behavior of local governments, which neglected to supervise the expenditure of medical insurance fund, reducing the efficiency of medical insurance fund management and use. The financial resources of medical insurance fund are unevenly distributed among provinces. Measures such as strengthening the supervision ability and initiatives of local governments, refining the central transfer payment mechanism, promoting the economic growth of western regions, and increasing rates for individual contributions appropriately can ensure that the medical insurance fund are used well and distributed equitably.

PENGARUH PAJAK DAERAH, RETRIBUSI DAERAH, DAN DANA PERIMBANGAN TERHADAP BELANJA MODAL DI KABUPATEN/KOTA PROVINSI DAERAH ISTIMEWA YOGYAKARTA TAHUN 2015-2019

Every region in Indonesia is given the right to manage regional autonomy in accordance with Law No. 32 of 2004. PAD is one of the most important incomes for a region. The potential sector that can be extracted from PAD is the tourism sector which has a contribution to regional taxes through restaurant taxes, entertainment taxes, and hotel taxes. This study aims: 1) Knowing and partially testing the effect of Regional Taxes, Regional Retribution and Balancing Funds on Capital Expenditures in Regency and City Governments in the Province of DIY in 2015-2019. 2) Knowing and testing the simultaneous effect of Regional Taxes, Regional Levies and Balancing Funds on Capital Expenditures in Regency and City Governments in the Province of DIY in 2015-2019. This research embodies the type of quantitative research with causal comparative or ex post facto. The subject of this research is the Province of DIY for the 2015-2019 period. The data used is secondary data originating from the Regional Financial Statistics of the 2015-2019 APBD Realization Report. The data collection system uses documentation and literature study methods. The analytical method used is descriptive statistical analysis, classical assumption test and multiple linear regression analysis. The results of this study are: 1) Local Taxes have an insignificant effect on Capital Expenditures in the Province of DIY 2) Regional levies have a non-significant effect on Capital Expenditures in the Province of DIY 3) Balanced Funds have a significant effect on Capital Expenditures in the Province of DIY 4) Found an effect positive and significant Regional Taxes, Regional Levies and Balancing Funds together on Capital Expenditures in the Province of the Special Region of Yogyakarta.

PENGARUH PENDAPATAN ASLI DAERAH, LEVERAGE, UKURAN PEMERINTAHAN, DAN DANA PERIMBANGAN TERHADAP KINERJA KEUANGAN PEMERINTAHAN DAERAH PADA PROVINSI SUMATERA UTARA

This study aims to determine whether the effect of local revenue, leverage, government size, and balancing funds on the financial performance of local governments either simultaneously or partially in districts/cities in North Sumatra Province. The research method in this thesis is using quantitative research, with a total sample of 33 from 25 districts and 8 cities in North Sumatra Province which was conducted for the 2018-2020 period. The type of data used is secondary data. This data was obtained through the website www.bps.go.id. The data that has been collected was analyzed by data analysis methods which were first carried out by testing the classical assumptions before testing the hypothesis. Hypothesis testing in this study using multiple linear regression with F test and t test. The results show that simultaneously local revenue, leverage, government size, and balancing funds on the financial performance of local governments have a significant effect on the financial performance of local governments. Partially, the local revenue variable has a positive and significant effect on the financial performance of local governments. Partially, the leverage variable has a positive and significant effect on the financial performance of local governments. Partially, the variables of the size of the local government are leverage, the size of the government, and the balancing fund on the financial performance of the local government. Partially, the balancing fund variable has a positive and significant effect on the financial performance of local governments.

Pengaruh Pertumbuhan Belanja, Pendapatan Asli Daerah, Ukuran Legislatif, dan Dana Perimbangan Terhadap Kinerja Keuangan Pemerintah Daerah

Local government financial performance is the achievement of policies drawn up over a certain period, measured by the financial system in accordance with the law. The purpose of the study was to determine and understand the effect of spending growth, local revenue, legislative measures, and balancing funds on the financial performance of local governments in East Java Province as measured by the effectiveness and efficiency of revenue and expenditure budget absorption. The sample of this research is districts and cities in East Java Province during the 2015- 2019 period. Statistical analysis techniques are multiple linear regression and saturated sampling method. The results showed that the growth of spending, local revenue, legislative size, had no effect on the financial performance of local governments by measuring the effectiveness of the absorption of the revenue budget, while the balancing fund had an effect on the financial performance of local governments by measuring the effectiveness of the absorption of the revenue budget. The results of the research on spending growth affect the financial performance of local governments using efficient measurements, while local revenue, legislative measures, and balancing funds do not affect the financial performance of local governments using efficient measurements.

Pendapatan Asli Daerah dan Dana Perimbangan terhadap Kinerja Keuangan Pemerintah Daerah

This study aims to determine the effect of PAD and Balancing Funds on the financial performance of local governments. This research method is descriptive quantitative. This research utilizes the Non-Probability Sampling method as well as the saturated sampling technique. The type of data used is secondary data obtained from the 2016-2020 Kediri City Government Budget Realization Report. The data were analyzed using multiple linear regression analysis with the help of SPSS 25 software. The results showed that PAD had a positive effect on local government financial performance. Meanwhile, the Balancing Fund has no effect. However, PAD and the Balancing Fund together have a significant effect on the local government's financial performance. In conclusion, the higher the PAD, the better the local government's financial performance, and the amount of balancing funds does not affect the regional government's financial performance. However, on the other hand, PAD and the Balancing Fund together have a significant impact on the local government's financial performance.
 Keywords: Balancing Fund, Regional Financial Performance, Regional Original Income

Analysis of the Role of the Regional Inspectorate in the Budget Management Review on the Implementation of the Deli Serdang Regency APBD

Regional autonomy is a breath of fresh air for the region, because it not only gets greater authority but also allocates a larger budget. The source of regional expenditure comes from regional original income from transfer of funds, regional original income and other legal sources. Most regional income donations come from balancing funds with a trend that continues to shrink. The research procedure used is a qualitative research procedure. The method of collecting information used is observation and interviews. The results of the research obtained in an effort to improve the welfare of citizens, regional governments are faced with the need for shopping areas which continues to increase while the original source of income for the region is limited. If the government is not able to maximize income outside the balancing fund, it can enlarge the fiscal gap that continues to be large. This is in line with the role of the inspectorate in carrying out a budget review for the implementation of the APBD in Deli Serdang Regency.

Fiscal condition, institutional constraints, and public pension contribution: are pension contribution shortfalls fiscal illusion?

AbstractOne important aspect of public finance is understanding expenditure allocations among competing purposes. Applying the public choice paradigm and fiscal illusion framework, this study explores the interplay between current state expenditures and financial needs, and long‐term financial responsibility to pension funds. Using state finance and pension data during 2004–2018, we found actuarially determined employer contributions paid by a state are inversely related to budgetary fund balances, total reserve fund balances, and state expenditures. Especially when governments are fiscally stressed, state officials appear to delay pension contributions while prioritizing operational spending. Interestingly, more stringent TELs and technical BBRs are effective at promoting prudent pension fund management. The study contributes to the public finance literature by providing empirical evidence to advance the argument that government's financing choices can affect the level of public expenditure while demonstrating the mechanism of the relationship between fiscal illusion and government budgetary decisions.