Fund Balance Research Articles

The Effecf Of Locally Generated Revenue And Balancing Funds On The Level Of Regional Financial Independence

This study aimed to determine the effect of locally generated revenue and balancing funds on the level of regional financial independence partially or simultaneously. The population in this study is the Lamongan District Budget Realization Report in the Office of the Financial Management Agency and Regional Assets (BPKAD). This study used an observation period from 2012-2019, with the saturation sampling method for the past eight years. The data analysis method used in this study is a multiple linear regression test with SPSS. This research used a quantitative approach, which conducted a theory test by measuring the research variables with numbers and analyzing the data using statistical procedures. The variables used are Regional Original Revenue and Balancing Funds as independent variables, with the Regional Financial Independence variable as the dependent variable. The results of this study produced findings that partially, the Original Regional Revenue significantly influences the Regional Financial Independence, and partially the Balancing Fund does not significantly influence the Regional Financial Independence. Whereas simultaneously, Regional Original Revenues and Balancing Funds significantly affect Regional Financial Independence. The contribution of Transfer Revenue (Balanced Fund) to Total Regional Income shows a high figure during the 2012-2019 research period.

PARADIGMA PENGELOLAAN KEUANGAN DAERAH SEBELUM DAN SELAMA PANDEMI COVID-19 DI KOTA KUPANG-NTT

ABSTRACT This study aims to determine the paradigm (point of view) of regional financial management before and during the Covid-19 pandemic in Kupang City based on regional financial management in 2018-2020. To deal with the Covid-19 pandemic, the Government makes policies on the use of regional budgets which are then regulated in several regulations that have been passed. This policy led to changes in the structure of the APBD due to the policy of refocusing and reallocating the budget. This type of research is a comparative descriptive with a qualitative research approach. Data collection techniques in this study were in the form of observation, interviews, and documentation. Data analysis techniques in the form of data reduction, data presentation, and drawing conclusions. There has been a change in the structure of the APBD, namely the PAD of Kupang City in 2020 decreased and the balancing funds from the center were diverted to deal with health problems due to Covid-19 in the City of Kupang such as DAK and DID. Regional financial management is considered disobedient/compliance with the law but that is understandable. Regional financial management in 2018 is categorized as effective and at the efficiency level it is categorized as efficient. 2019 is categorized as effective and quite efficient. Meanwhile, 2020 is categorized as very effective and quite efficient. The city government's transparency is assessed in accordance with the concept of transparency in regional financial management. Keywords: Refocusing, Reallocation, Pandemic, Covid-19, APBD, Paradigm, Kupang City Government

Налогообложение доходов физических лиц: социальный аспект

In modern conditions that are characterized by financial and economic instability the problem of ensuring the balance of funds coming to budgets of all levels is quite acute. One of the key sources of income of the Russian consolidated budget are the tax payments, among which the personal income tax (PIT) plays an important role. In-come tax in Russia has a fairly long history of formation. Its economic content and implemented functions indicate the high importance of income taxation for the life of society, economic and budgetary systems. There have been studied the current trends in development of taxation of personal income in Russia. It has been stated that in modern conditions there appear more challenges from the world economy and currency market, which may result in personal income tax administration becoming more complicated in Russia. Due to the impact of coronavirus pandemic, imposing the economic sanctions and the general unfavourable macroeconomic situation there have been highlighted the increasing PIT arrears, decreasing tax revenues, a low share of PIT in the consolidated budget and GDP of the Russian Federation. Economic and financial potential of PIT is underutilized in Russia. There has been proposed an approach to changing the tax tools including tax mechanisms that form the level of well-being and development of citizens using a progressive scale of taxation. It is recommended to provide for a change in the PIT depending on the level of citizens’ income and their proximity to the subsistence minimum. This approach will contribute to solving the problems of social inequality, redistributing excess incomes in favor of the least affluent segments of the population, improving the effectiveness of Russia’s social policy in the medium term, and increasing budget revenues

The Influence of Regional Original Revenues, Balancing Funds and Capital Expenditures on the Financial Performance of Regency/City Regional Governments of East Java Province

This study aims to determine and obtain empirical evidence of the effect of Regional Original Revenues, Balancing Fund and Capital Expenditure partially and simultaneously on the Financial Performance of Regency/City Governments in East Java Province. The type of research used is quantitative with a causal associative approach. The research data used is secondary data. The sampling technique used in this research is saturated sampling. The population in this study is the East Java Province Regional Budget Realization Report of 38 districts/cities for 3 fiscal years 2018-2020. The sample in this study was all 38 districts/cities of East Java Province consisting of 29 districts and 9 cities with a research period of 3 years. The analytical method used is multiple linear regression. The results of this study indicate that partially the Regional Original Revenues has a positive effect on the financial performance of the regional government, the Balancing Fund has a negative effect on the financial performance of the regional government, and Capital Expenditure have a negative effect on the financial performance of the regional government. Simultaneous test results show that Regional Original Revenues, Balancing Fund and Capital Expenditure together have a significant effect on the Financial Performance of the Regency/City Government of East Java Province.

PENGARUH INDEKS KAPASITAS FISKAL (IKF) DAN INDEKS RUANG FISKAL (IRF) TERHADAP DANA PERIMBANGAN TAHUN 2015-2020 PADA 122 KABUPATEN DAERAH TERTINGGAL DI INDONESIA

Underdeveloped regions are characterized as regions with unavailability of natural resources which causes high financial dependence to the central government in the form of balance funds transfer. This causes the low level of autonomy of underdeveloped regions because of the lack of local revenue sources. The average Fiscal Capacity Index (IKF) of underdeveloped regions during 2015-2018 was 0,75 or in the moderate category. Some underdeveloped regions in Papua and West Papua have high IKF because of the Special Autonomy fund. In terms of fiscal space (IRF), the freedom of underdeveloped regions in determining their own spending priorities by 36% throughout 2016-2018. One of the main goals of fiscal decentralization is to eliminate horizontal gaps between regions, which in turn must be reflected in the budgeting process where regions that are more in need (underdeveloped regions) will get more allocations than other better-off regions.The purpose of this study is to analyze the influence of IKF and IRF on the balance of funds for the 2015-2018 period in 122 underdeveloped regions in Indonesia. The data used are data on balancing funds, IKF, IRF for the period 2015-2018 sourced from BPS, the Ministry of Finance, and other relevant agencies. The analysis tool uses Panel Data regression with the Fixed Effect Model. The results of the analysis show that the IKF variable has a significant positive effect on the balance fund and the IRF variable has a significant negative effect on the balance fund.

The Influence of Local Government Financial Factors on the 2021 Budget Forecast Error: Studies on Local Governments in Indonesia

The APBD aims to coordinate financing within local government and create transparency in local government budgets. The components of the APBD consist of regional income, regional spending and budget financing . In the process of preparing the APBD, the structure and contents of the APBD are adjusted to the needs of government administration and regional government revenues within one fiscal year. This type of research uses a quantitative approach with a research design of hypothesis testing studies . In sample research, this research uses purposive sampling with the aim of obtaining a representative sample according to the criteria, namely the Provincial Government which has the highest SILPA in 2021. The dependent variable Budget Forecast Errors has an average of 1.39 and a maximum value of 9.45. The minimum value is 0.91 and the standard deviation value is 1.79. These results can be explained that the Regional Original Income variable has a high average value when compared to the standard deviation, which is 103.74 greater than 12.84. The independent variable Balancing Fund has an average value of 100.62, a maximum value of 106.85, a minimum value of 95.66, and a standard deviation value of 3.26. These results can be explained that the average value of the Other Legal Regional Income variables is relatively high when compared to the standard deviation, which is 114.74 greater than 43.78. The independent variable Direct Spending has an average value of 91.21, a maximum value of 115.34, a minimum value of 58.88, and a standard deviation value of 13.42.

Pengaruh Pendapatan Asli Daerah dan Dana Perimbangan Terhadap Kemiskinan dengan Belanja Daerah Sebagai Variabel Intervening di Kabupaten Malang

Malang regency has the highest poverty rate in East Java followed by Jember Regency. Regional financial management by the local government as a power holder is something that can affect how the level of poverty and welfare of the people in the area. This study aims to find out how the influence of Regional Native Income (PAD) and Balance Fund (DAPER) on Poverty directly and indirectly through Regional Expenditure (BD) in Malang Regency. The type of data used in this study is secondary data, time series with a period of time from 2009 to 2020 and processed using multiple regression analysis methods for path analysis testing. The results of this study showed that the region's native income has a significant negative influence on poverty, the balance fund has a significant negative impact on poverty, the local native income has a significant negative influence through regional spending on poverty, and the balance fund has a significant negative contribution through regional spending on poverty.

Management of Zakat Funds at Amil Zakat Baitulmal Mu’amalah to Empower People

This paper aims to identify the zakat as sepnding part certain from treasure certain have until the Nisabah for the right people accept it. There are 166 million of Muslims in Indonesia (83 % of Indonesia's population is 204.8 million), assumed as muzakki. Muzakki is 18 %, and the potential for zakat in Indonesia is 19.3 trillion per year. This research was a qualitative approach in the form of a case study. Sources and types of data using data primer. The results showed that management of zakat funds at the Amil Zakat Institute Baitul Maal Muamalat already fulfills standard management which covers management finance in the form of collection, distribution, recipient of funds, field program objectives, form and nature distribution, disbursement of funds, accountability, and management fund balance. From this research, we can get data related to the mechanism for collecting and distributing zakat funds and can be used as research and addition of knowledge.

ANALISIS FAKTOR-FAKTOR YANG MEMPENGARUHI PERTUMBUHAN EKONOMI KABUPATEN/KOTA DI PROVINSI BALI TAHUN 2015-2019

The implementation of regional autonomy gives wider authority to regional governments to regulate their own regions according to their potential. Fiscal decentralization is a form of delegation of authority in order to support the implementation of regional autonomy. This study aims to analyze the factors that influence the economic growth of districts/cities in Bali Province in 2015-2019. The data used in this study were sourced from secondary data. The analytical technique used is panel data regression analysis with the E-Views 9 program. The results of the study show that local revenue, balancing funds, capital expenditures and labor simultaneously have a significant effect on the economic growth of districts/cities in Bali Province in 2015-2019. Partially Local Original Income, capital expenditures and labor have no significant effect on the economic growth of districts/cities in Bali Province. Meanwhile, the balancing fund has a positive and significant impact on the economic growth of districts/cities in Bali Province in 2015-2019

The Effect of Local Revenue and Balancing Funds on the Economy of Bali Province in 2012-2019

The implementation of Law Number 32 of 2004 concerning regional autonomy required Indonesia to change its economic development system from centralized to decentralized. One form was fiscal decentralization which aimed to promote social welfare and regional independence. However, the economic growth of several regions fluctuated, even though the fiscal decentralization instrument issued by the central government continued to increase. One of the provinces in Indonesia that have implemented a fiscal decentralization policy is Bali. It is categorized as one of the very-good provinces in terms of economic independence, reaching 53 percent, and tent to receive increasing local revenue every year. However, its economy seems to remain relatively high. This study aims to estimate the effect of fiscal decentralization as seen from PAD and balancing funds to the economic growth in districts/cities of Bali Province in 2012-2019. By using panel data regression analysis, this study examines the effect of PAD and balancing funds in the districts/cities of Bali Province and their effects on Bali’s economic growth. This study finds that the best model explaining the influence among those variables is the Fixed Effects Model (FEM) with Seemingly Unrelated Regression (SUR). The results show that the DAU and the combination of the utilization of regional income that includes PAD and other legal regional income have a positive and significant effect on economic growth in the districts/cities of Bali Province. Therefore, optimizing the use of regional revenues, both in the form of PAD and Other Legitimate Regional Revenues, may increase economic growth.

Pengaruh Kebijakan Fiskal dan Dana Perimbangan terrhadap Belanja Daerah: Studi pada Pemerintah Kabupaten/Kota di Sumatera Selatan

Research on the effect of fiscal policy and balancing funds on expenditures in the government of the City/Regency of South Sumatra is the purpose of this study. City/Regency Provincial Government Budget Realization Report. South Sumatra 2019-2021 is the main source of secondary data for this research. The saturated sample approach is the one used for the sampling process. Classical assumption test, multiple linear regression analysis test, and hypothesis testing are the analyzes used in this study. The tool used by the SPSS 26 application, and the results indicate that PAD, DBH, and DAU have a significant positive effect on regional spending, while DAK has no effect on City / District government spending. South Sumatra
 Keywords: Regional Expenditure; Balance Fund; Fiscal Policy

Analysis of Village Fund Management and Community Empowerment during Covid-19 Pandemic

Community empowerment as an endeavor to reduce community poverty is an issue encountered by many villages. A village is expected to be creative in terms of budget management. Based on Law No. 06 of 2014 concerning villages, Villages have sources of income in the form of original village income, revenue sharing from regional taxes and district/city regional levies, and part of the central and regional financial balance funds received by districts/cities, budget allocations from State Budget (APBN) district/city, as well as grants and donations that are not legally binding from third parties. The study aims to describe village funds management in improving community welfare through community empowerment programs conducted in Suka Mulya Village, Wonosari District, Gorontalo Regency. It relied on a descriptive qualitative method which explains the description of each variable in the study. The result discovered that the Village Fund, which the government provided to communities as a type of stimulus to improve welfare and community empowerment, was not adequately managed as expected. The utilization of Village Funds in the site area since 2019 has not been fully effective in an effort to improve community welfare. This can be seen in the failure of the community empowerment program in Suka Mulya Village, Wonosari District, Boalemo Regency.

The Effect of Regional Taxes, Regional Levies, Balancing Funds, and other Legitimate Regional Revenues on Regional Independence Through Direct Expenditure (Empire Study: District/City Governments in East Nusa Tenggara Province)

The study aims to analyze regional financial independence as seen from regional taxes, regional levies, balancing funds and other legitimate income that has an impact on regional independence through direct spending on districts and cities in East Nusa Tenggara Province for the 2017-2019 period. The data used in this study is a quantitative data type and the source of data included in this study is secondary data. In this study, the samples used were 21 districts and 1 city in East Nusa Tenggara Province. The data collection technique in this research is by documentation, namely looking at the realization and budget reports at the Central Statistics Agency (BPS) NTT and the Director General of Fiscal Balance (DJPK) for the 2017-2019 period. The analytical method used in this research is path analysis. The results of this study indicate that in the substructure equation I, regional taxes, regional levies, balancing funds and other legitimate regional revenues simultaneously have an impact on direct expenditures. Meanwhile, in the substructure equation II, regional taxes, regional levies, balancing funds, other legitimate regional income and direct expenditures jointly affect regional independence. In the partial test of substructure I, regional taxes and other legitimate local revenues have a positive and significant impact on direct spending. However, regional levies and balancing funds have no impact on direct spending. In substructure equation II, there is a positive relationship between regional taxes and direct expenditures on regional independence, balancing funds and other legitimate regional revenues has a negative impact on regional independence. However, regional levies have no effect on regional independence. Regional taxes and other legitimate regional revenues do not affect regional independence through direct spending. Meanwhile, regional levies and balancing funds through direct spending indirectly affect regional independence.

Fiscal Decentralization and Per Capita Income Convergence between Regencies/Municipalities in Java Island

This study aims to analyze the existence of beta absolute convergence and beta conditional convergence, the impact of fiscal decentralization in terms of income and expenditure side on per capita income and the process of accelerating the per capita income convergence using 2015-2019 panel data of 113 regencies/municipalities obtained from Central Bureau of Statistics and the Directorate General for Fiscal Balance. Using fixed effect regression models, this study confirms that there are beta absolute convergence and beta conditional convergence in Java Island during 2015-2019. Other findings are Local Own Source Revenue and Fiscal Balance Fund have a significant positive effect on per capita income growth, while Personnel Expenditure and Capital Expenditure have a significant negative effect on per capita income growth. The results also show that all indicators of fiscal decentralization play significant role in accelerating the convergence of per capita income. Based on the results of estimates, Local Government Own Source Revenue should be optimized and quality of government spending have to be improved to foster income per capita convergence between regions in Java Island. Keywords: income per capita convergence, fiscal decentralization regional inequality, absolute beta convergence, conditional beta convergence

Implementasi ISAK 35 dan Penyajian PSAK 109 dalam Laporan Keuangan pada Masjid Al-Muslimun Tulungagung

This study aims to determine the application of ISAK 35 as a standard for presenting financial statements, especially at the Al-Muslimun mosque, Tulungagung Regency, and to determine the presentation of financial statements combined between PSAK 109 and ISAK 35 to facilitate accountability and transparency of the management. The method used is a qualitative method with a case study approach. The data used in the study came from interviews, observations, documentation, and other relevant literature sources. The results of the study indicate that the Al-Muslimun mosque has not implemented ISAK 35 in the presentation of its financial statements. The financial statements are presented simply by only writing down the cash income and usage each month. The reconstruction of the financial statements for Al-Muslimun mosque shows a statement of financial position according to ISAK 35. Still, in the net assets section, it is converted into a balance of funds. Statements of comprehensive income, statements of changes in net assets, statements of cash flows, and notes to financial statements are presented under ISAK 35. Meanwhile, reports of changes in funds and reports of changes in assets under management are presented under PSAK 109.

THE IMPACT OF FISCAL DECENTRALIZATION ON THE EFFICIENCY OF HEALTH EXPENDITURE AND WELFARE: CASE STUDY OF SOUTH SULAWESI PROVINCE

The objective of this study is to analyze: (i) the efficiency level of health function expenditure in the region; (ii) the impact of fiscal decentralization on the efficiency of health function expenditure in the region; and (iii) the implications of health function expenditure efficiency at the level of people welfare in the region. The study used quantitative approaches with Data Envelopment Analysis (DEA) and Dinamic Generalized Method of Moment (DGMM) analysis techniques. The results showed that the realization and utilization of expenditure in most districts/cities in South Sulawesi Province ran less efficient. From the results of DGMM, it was found that Regional Own-source Revenue has a negative and significant impact on the efficiency of health function expenditure, while Balance Funds also have a negative but insignificant effect. Increased efficiency of health function expenditure will be followed by improvements in people's well-being. Meanwhile, fiscal decentralization policies both in the form of Regional Own-source Revenue and Balance Funds, also have a positive effect on welfare, but are limited (insignificant).

Analysis of Economic Activity of Foreign Direct Investors in Latvia

The aim of this article is to investigate the activity of foreign direct investors in Latvia and find out the main source of financing for foreign investors - new investments or reinvested earnings. To achieve the set goal, the methodology of the Sixth Edition of the International Monetary Fund's Balance of Payments and International Investment Position Manual was used to define the types of foreign direct investment (FDI). This methodology was adapted to Latvian data. At the request of the author, Lursoft IT Ltd selected business data on all registered companies with foreign capital in Latvia since 2005 and aggregate data were used in the analysis. Foreign direct investment in Latvia flows mainly in the form of reinvested earnings, due to the profit earned from operating activities in Latvia. While new investments or greenfield investments in equity is lower compared to the amount of reinvested earnings.

Trade Credit Insurance for the Capital-Constrained Supplier

This paper examines the role of trade credit insurance in a supply chain consisting of a capital-constrained supplier and a capital-constrained retailer. The retailer faces stochastic market demand and seeks trade credit from the supplier. The supplier, who is the Stackelberg game leader, decides the production quantity and the insurance coverage rate. We find that when the supplier’s initial capital is not sufficient, the use of trade credit insurance may reduce the trade quantity and the expected profit of the retailer. However, when the initial capital of the supplier is sufficient, the use of trade credit insurance will always increase the trade quantity. In the extension, we assume the supplier will face a potential financing cost if the net income is lower than the threshold. We find that if the insurance company has to keep its expected return positive and has no way to invest the insurance premium, the supplier will never buy the trade credit insurance no matter how much the marginal financing cost is when threshold is outside a certain range. Both the results and the methods in this paper can help businesses achieve a balance of funds and the logistics of the supply chain and risks, thereby improving the effectiveness of the supply chain operation.

Infrastructure Spending in the Characteristics of the Regions: Towards the Achievement of Sustainable Development Goals

Indonesia is faced with challenges by the increasing infrastructure competitiveness globally. In 2019, Indonesia's competitiveness rank declined to 72 nd from 141 countries compared to the previous year (World Economic Forum, 2019). Another challenge is also depicted in achieving Sustainable Development Goals (SDGs) 9 dealing with the infrastructure as shown at two indicators that still require special attention. So far, the gaps in i nfrastructure development still exist in Indonesia after seeing the region's characteristics. The government also supports infrastructure development with a fiscal decentralization system through the Balancing Fund instrument. This study is aim ed to analyze the effect of Owned-Source Revenues ( OSR ) and Balancing Fund Income on infrastructure development in Indonesia by considering infrastructure mandatory spending and aspects of regional characteristics comprise institutional status, geographical conditions, and economic structure. T his study use s four-panel data regression modeling and the Generalised Method of Moment (GMM) method for analysis . The results showed that government intervention in mandatory infrastructure spending could moderate the influence of OSR and Balancing Fund income on infrastructure development. In testing based on regional characteristics, the impact of OSR and Speci fic Grant ( Dana Alokasi Khusus/ DAK ) on infrastructure development is higher. It has a positive value in regions with better financial independence (urban, Java-Sumatra, and metropolitan). Otherwise, the influence of Block Grant ( Dana Alokasi Umum/ DAU) and Shared Nontax Revenues ( Dana Bagi Hasil/ DBH) on infrastructure development is stronger. It has a significant positive value in regions with a lower financial independence category (district, non-Java-Sumatra, and non-metropolitan). This research also provides novelty in an analysis of mandatory spending on infrastructure. The central government can use the results of this study to make priorities or maximize the potential of Subnational Governments (SNGs) in infrastructure development, and the ultimate goal is the achievement of the Infrastructure SDGs in Indonesia. Keywords: Infrastructure, Fiscal Decentralization, Regional Characteristics, GMM

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 .