Local Government Revenue Research Articles

Determinants Analysis of Original Local Government Revenue in the Tourism Sector of the Special Regional of Yogyakarta

ABSTRACTThe aim of this research is to find out the effect of tourism investment, number of tourists, number of tourist attractions, hotel room occupancy rates, and tourism sector local tax on OLGR tourism sector in the Special Region of Yogyakarta. The sampling method used was purposive sampling. The data used is tourism investment, number of tourists, number of tourist attractions, hotel room occupancy rates, tourism sector local tax, and OLGR tourism sector in the Special Region of Yogyakarta in 2004 – 2022. This study is quantitative research with multiple linear regression. The results showed that number of tourist attractions, hotel room occupancy rates, and tourism sector local tax have a significant positive effect on the OLGR tourism sector. Tourism investment and number of tourists have no significant effect on OLGR tourism sector.Keywords: Government accounting, Local taxes, Multiple linear regression, Original local government revenue, Tourism investmentABSTRAKTujuan penelitian ini adalah untuk mengetahui pengaruh investasi pariwisata, jumlah wisatawan, jumlah objek wisata, tingkat hunian kamar hotel, dan pajak daerah sektor pariwisata terhadap PAD sektor pariwisata di Daerah Istimewa Yogyakarta (DIY). Metode penentuan sampel yang digunakan adalah purposive sampling yaitu data investasi pariwisata, jumlah wisatawan, jumlah objek wisata, tingkat hunian kamar hotel, pajak daerah, dan PAD sektor pariwisata DIY tahun 2004 – 2022. Penelitian ini merupakan penelitian kuantitatif dengan teknik analisis regresi linear berganda. Hasil penelitian menunjukkan bahwa jumlah objek wisata, tingkat hunian kamar hotel berpengaruh positif signifikan terhadap PAD sektor pariwisata. Investasi pariwisata dan jumlah wisatawan tidak berpengaruh signifikan terhadap PAD sektor pariwisata.Kata Kunci: Akuntansi pemerintahan, Investasi pariwisata, Pajak daerah, Pendapatan asli daerah, Regresi linear berganda

How does technological innovation affect the fiscal decentralization of local governments? Evidence from China

Technological innovation is a pivotal driver of high-quality economic development, and China's distinctive fiscal decentralization model stands out as a crucial institutional factor behind the country's economic growth miracle. Despite its significant academic and practical implications, there is a noticeable scarcity of literature on examining government fiscal decentralization through the lens of technological innovation. This paper addresses fundamental research questions regarding the relationship between technological innovation and fiscal decentralization. Leveraging balanced panel data from 30 provinces in China spanning 2005 to 2020, our findings indicate that technological innovation positively impacts the fiscal decentralization of local governments. Specifically, for each standard deviation increase in technological innovation, there is a corresponding 0.1508 standard deviation in fiscal decentralization. The mechanism driving this relationship lies in technological innovation's ability to enhance enterprise profit levels, increasing tax and non-tax revenues for local governments. Importantly, when non-tax revenue at the central government level surpasses tax revenue, the resulting augmentation in local government revenue contributes to an elevated level of fiscal decentralization. In conclusion, this paper offers valuable insights into the government's endeavors to promote scientific and technological innovation while enhancing local fiscal decentralization. These insights contribute to an improved quality of economic development.

Analysis of Local Tax Potential of Ogan Komering Ulu Regency

The original revenue of local governments is one of the vital elements that can support regional development and governance, exemplified by BPHTB as a significant revenue generator. This study aims to analyze the potential of the Fees for Acquisition of Rights on Land and Buildings (BPHTB), which is one of the local taxes in the Ogan Komering Ulu Regency. The research employs a qualitative approach with descriptive methods. The discussion reveals that the regional original revenue in Ogan Komering Ulu Regency experiences significant fluctuations but generally increases annually. This phenomenon is attributed to the efforts of related institutions in collecting and implementing policies to optimize the original revenue. The implementation of the BPHTB tax policy along with existing policies in Ogan Komering Ulu Regency has caused some challenges as it was considered a panic policy following the audit conducted by the BPK. However, ultimately, this policy has contributed to an increase in original revenue through the enforcement of the applicable land tax.

Analysis of the Effectiveness of Utilization of Regional Owned-Asset to Increase Regional Revenue

Utilization of Regional Owned-Asset (Indonesian: Barang Milik Daerah, abbreviated BMD) is one of the opportunities for regions to increase Original Local Government Revenue (Indonesian: Pendapatan Asli Daerah, abbreviated PAD). This study aims at analyzing the effectiveness of implementing BMD utilization to increase PAD. It is a case study at Regional Income and Asset Financial Management Agency (Indonesian: Badan Pengelolaan Keuangan dan Aset Daerah, abbreviated BPKAD) Surakarta. A qualitative descriptive approach is employed in this study. The data are in the form of primary and secondary data and were obtained from the data of the utilization of BMD that has been implemented and reports on the realization of regional income and expenditure budgets. The results of this study show that BMD utilization in Surakarta is implemented effectively although it is still not optimal. The utilization of BMD has contributed to PAD Surakarta by showing an increase every year. Even though it has increased, the contribution of the use of BMD to PAD is little, which is under one percent of all other PAD components. Surakarta government needs to optimize the use of BMD and innovations or groundbreaking ideas to increase the contribution rate to Surakarta's PAD.

Relocation of public institutions and local public finance: Evidence from South Korea

An extensive, large-scale relocation of public institutions occurred in South Korea in the 2010s. The local policy governing this relocation was implemented to mitigate metropolitan concentration and advance equitable regional development. The policy's ultimate goal was to bolster the fiscal foundations of local governments to facilitate regional economic self-sufficiency. This study employs a synthetic differences-in-differences methodology to analyze the repercussions of public institution relocation on local government revenue. Ultimately, our findings fail to provide unequivocal evidence of a significant impact on various local revenue streams; in fact, they indicate a decrease in total revenue per capita. This study intimates that, from a local fiscal perspective, the efficacy of local reinvigoration policies via the relocation of public institutions may be limited, underscoring the importance of implementing a range of supplementary measures to facilitate the transformation of these urban centers into self-sustaining entities. Points for practitioners This study highlights the limitations of relying solely on large-scale relocation of public institutions to stimulate local economies in South Korea. Despite policy intentions, our findings indicate a decrease in total revenue per capita, suggesting a need for supplementary measures to foster sustainable urban development. Practitioners should consider diverse strategies beyond relocation, emphasizing holistic approaches to bolster regional economic self-sufficiency and mitigate metropolitan concentration for equitable growth.

The Effect of Capital Expenditure on Regional Financial Performance With Local Original Income as an Intervening Variable in Districts and Cities in NTT Province in 2017-2021

The research aims to analyze the influence of capital expenditure for local government financial performance through local government revenue as intervening variables. The sampling technique in this study is to use the purposive sampling method. The object of this research is all districts and cities in NTT, with a sample of 22 districts and cities. The data used is a type of secondary data, which was obtained from the realization of the 2017-2021 district and city revenue and expenditure budget (APBD) in NTT. The results of this study indicate that capital expenditures have an influence on local government revenue, and local government revenue has an influence on local government financial performance. Apart from that capital expenditures have a local government financial performance, with all of them having a positive correlation. The local government revenue is able to mediate the relationship between capital expenditures on local government financial performance.

Huaihua International Inland Port Development and Its Impact on Local Residents’ Housing Demand

Studies have shown that constructing international inland ports can create an impetus for the local community’s comprehensive economic and social development. It can also promote population concentration and accelerate urbanization in inland areas. Population inflow affects residents’ housing demand. An in-depth study should be conducted on the impact of the construction of Huaihua International Inland Port on the housing demand of the residents in the southwestern Hunan area. From the perspective of the development trajectory of Huaihua International Inland Port, it analyzes how the port affects the local economy, employment, government revenue, and urbanization progress. Combined with the analysis of residents’ housing status in Huaihua City of Hunan Province, China, it predicts their future housing demand in Huaihua City. The results show that residents’ housing demand will change in stages.

Low Grade Coal Quality With Up Graded Brown Coal Technology

The aim of this research is to increase the calorific value of coal. In this way, coal which has a calorific value of 3500 kCal/kg can be increased to 6500-7000 kCal/kg. Apart from that, by carrying out this up grading, a number of volatile meters will disappear as a result of the heating and pressure process. The knock-on impact is an increase in the economic value of coal and thus the selling price will be more competitive. After the data was collected, the data was analyzed using descriptive methods. The descriptive method is used to describe the upgraded brown coal (UBC) process. Findings that can be obtained in this research include: 1) Potential company profits can be increased, 2) Increased local government income through taxes, 3) Many mining areas can be exploited, 4) Reduction of unemployment by expanding employment opportunities in the mining sector, 5) Reducing environmental damage by mining power by mining wisely. 6) Reducing environmental pollution due to the combustion process. 7) With this process, investment in the coal mining sector can be increased. This research concludes that the economic value of low quality coal will increase and the profits that can be obtained will be better.

Optimalisasi Sumber Daya Manusia terhadap Pengolahan: Studi Kasus Industri Pengolahan Bahan Baku Rotan

Rattan is a non-wood raw material originating from Indonesia which has become the main source of income for community forests and local governments. Rattan processing has challenges in obtaining raw materials and skilled processing techniques by workers or human resources in order to produce quality output which of course can also advance the company. The use of machines and human resources in the rattan production process can increase production speed and accuracy. This research was conducted to determine the performance of human resources which influences the quality of the rattan products produced. The research method used in this research is a type of qualitative research with a descriptive approach and has an exploratory nature. The data collection technique in the research was carried out by creating an inductive scheme to make it easier for researchers to carry out research analysis and based on existing case studies. Observations were carried out by researchers regarding activities that occurred in the company during the researcher's internship period. The research object of rattan processing and human resources is information from the UD company. Alam Sultra's work. The research results show that the company UD. Karya Alam Sultra carries out empowerment by providing skills and training to its workers to improve the quality of employee performance in processing rattan so that it can become good quality rattan. This proves that there is empowerment in the processing of rattan raw materials, enabling the performance skills of human resources to increase efficiency and innovation in the processing of rattan products and produce quality rattan.

Revisiting Calls to Restructure Nigerian Styled Federalism

Over-dependence by federating units on the central government on financial matters, created some misgivings over the operational trajectory of federalism and its acclaimed dysfunctionality in Nigeria. The paper revisits the calls to restructure Nigeria's peculiar federalism, evaluates the historical antecedents, assessed government's response to such calls, at the same time, examines altercations for and against restructuring. It adopted political economy for theoretical framework, and descriptive research design, utilising secondary source of data with content analysis. The paper found that the main bone of contention is anchored around economic exclusivity by the federal government, which is breeding dissatisfaction. Nature of politics influenced lopsided restructuring that concentrated on territorial aspects, rather than the economic domain, this disabled fiscal federalism. It concluded that the policy of concentrating revenue allocation at the centre, does not give room for each federating unit to leverage on their capacity to internally generate revenue from the resources in their environment. In order to enjoy the dividend of federalism, and advance towards achieving sustainable development a revisit to calls for restructuring is needed. There is fluidity in government's commitment toward restructuring, seen in the lack of implementation of various committees reports on restructuring and fiscal federalism. Also, there is absence of the political will to change the status quo of unitarized federalism. The paper recommends that comprehensive restructuring, with the states and local government revenue generating capacity as the kick-off point. It urgently requires cutting down cost of governance to the barest minimum.

Do intergovernmental transfers accelerate the formation of zombie firms? A study based on fuzzy regression discontinuity analysis

Intergovernmental transfers are an important source of revenue for local governments, while governments’ revenue and expenditure practices are considered to be a deep-seated cause of zombie firm formation. Based on Chinese county-level panel data from 1999 to 2007, this study employs a policy experiment on the qualification for classification of China's national poverty counties in 1994 and analyzes the impact and mechanism of intergovernmental transfers on the formation of local zombie firms using the fuzzy regression discontinuity method. It is found that the proportion of local zombie firms will increase by 0.7 units and 3.2 units, respectively, when the share of general and earmarked transfers increases by 1 unit, confirming that intergovernmental transfers contribute to the formation of zombie firms. The results remain robust to different zombie firm identification methods. Further analysis also demonstrates that when local governments receive fiscal transfer payments with less autonomy, tax effort will increase, which eventually affects firms’ production and operations. The subsequent higher total burden caused by the increased tax collection and management leads to the formation of zombie firms. This study proposes a theoretical construct and intuitive evidence for accelerating the elimination of zombie firms and improving the fiscal transfer system in China.

Faktor PAD Memediasi Pengaruh Belanja Modal Pada Pertumbuhan Ekonomi Daerah Di Kabupaten/Kota Se-Bakorwil 1 Madiun

This studi aims to test the influence of capital spending on economic accretion mediated by Original Local Government Revenue (PAD) in districts/cities in Bakorwil 1 Madiun in 2012 - 2022. Secondary data is realization of capital expenditure and PAD was got from the situs of DJPK. Ministry of Finance RI and regional economic growth with GRDP proxies obtained from BPS for various districts/cities in Bakorwil 1 Madiun. This category of study is quantitative and explanatory approach. The data analysis method usespath analysis. The results of the partial direct influence research show that capital spending has no positive and insignificant effect on regional economic development, capital expenditure has a significant positive impact on PAD and PAD has a significant positive impact on regional economic accretion. The indirect effect concludes that PAD mediates the influence of capital spending on regional economic development. Keywords: Capital Expenditure, Regional Economic Growth, Regional Original Income

IMPLEMENTASI DESENTRALISASI FISKAL DALAM UPAYA MENGENTASAN KEMISKINAN DI KABUPATEN DAN KOTA PROVINSI JAWA BARAT

The implementation of fiscal decentralization is driven by the belief that the regional government is the vehicle that best understands the needs of regional communities rather than the central government. This delegation of authority is then followed by budget allocation and provision of public goods to the regional government. This then opens up a new assessment that simply fiscal decentralization has an impact on poverty alleviation. However, the report on the implementation of fiscal decentralization over two decades in Indonesia shows that the rapidly increasing allocation of transfer funds has not been accompanied by a rapid reduction in poverty rates. Therefore, this research aims to determine the effect of fiscal decentralization indicators on the percentage of poverty, namely local government revenue, fiscal balance transfers and local government spending. By using Panel Least Square (PLS) regression estimates, we used specific samples based on districts and cities in West Java from 2014 to 2019. The regression results show that regional income can significantly reduce poverty, while the allocation of fiscal balance transfers makes poverty increase. Apart from that, local government spending was found to have no significant influence on the percentage of poverty. This paper is expected to help the government in carrying out financial management that is right on target. The ineffective allocation of balanced transfers in West Java needs to be responded by the regional government according to the priority scale in each disctrict or city.

ANALYSIS OF THE FINANCIAL PERFORMANCE OF ORIGINAL LOCAL GOVERNMENT REVENUE OF KLATEN

This study aims to discover the financial performance of the Original Local Government Revenue (Indonesian: Pendapatan Asli Daerah, abbreviated PAD) of the Klaten Regency Local Government from 2018 to 2022. This study is quantitative and descriptive. Data analysis was performed using the independence ratio, effectiveness ratio, and contribution ratio. The results show the financial performance of the PAD of the Klaten Regency is very low. It is seen from the regional financial independence ratio from 2018 to 2022 that has a percentage of 17.57% with the pattern of instructive relationships. The PAD effectiveness ratio from 2018 to 2022 shows very effective criteria because the revenue exceeds 100% with a percentage of 115.11%. The PAD contribution ratio from 2018 to 2022 shows moderate criteria because it has a percentage of 25.00%. In addition, there are still several obstacles to increasing PAD experienced by the Klaten Regency Local Government. Based on the results of this study, the researchers give some recommendations, namely optimizing sources of PAD that have not been developed well, digitizing the payment system, promoting Local Government Owned Enterprises directly to the public through social media, and putting efforts to minimize obstacles to increasing PAD.

Retribution Collection and Tellecomunication Tower Control on Increased Original Local Government Revenue in Banyuasin District

The aim of this research is to identify how retribution and control of telecommunications towers affect the increase in regional foreign income in Banyuasin Regency. The data sources in this research are secondary data, namely Surat Tanda Retribusi Daerah (STRD) and Surat Tanda Setoran (STS) at the Banyuasin Regency Diskominfo-SP. The research method used in this study is descriptive qualitative. There are three stages in this method: data condensation, data presentation, and verification or conclusions. The percentage of telecommunications tower control retribution collected by the Banyuasin Regency Government in 2020 has exceeded the revenue target, namely 100.23%, in 2021 it increased to 101.60%, while in 2022 it decreased to 84.89%. Even though there will be a decline in 2022, the realization of revenues in 2020 and 2021 has reached or even exceeded the targeted revenues. has been above 100%, this shows that the collection of telecommunications tower control retribution has been achieved very effectively. Meanwhile, the contribution of retribution and control of telecommunications towers to increasing PAD during 2020-2022 is still below 10%, so the criteria are very low.

CONTRIBUTION OF INFORMAL STREET VENDORS TO LOCAL GOVERNMENT REVENUE DURING POST-COVID 19 PANDEMIC

This paper discusses the contribution of informal street vendors to local government revenue generation during the COVID-19 pandemic. Informal street vendors usually develop businesses to sell something and earn an income. They not only generate their income but also generate revenue for the local government. The main objective of local governments is to maintain and improve their efficiency. Therefore, this study aims to understand how informal street vendors contribute to the revenue of Kubang Pasu municipal in the short term, especially after the COVID-19 pandemic. The study covers 50 street vendors in Kubang Pasu. The results of the study show that there are only two (2) independent variables that affect the dependent variable. First, the relationship between affordable licenses and Kubang Pasu Municipal’s revenue shows a positive (0.301) and significant (0.019) relationship at a 0.050 level of significance, which means that the more affordable licenses issued, the higher the Kubang Pasu municipal revenue. Second, the relationship between the current post-pandemic business situation and Kubang Pasu municipal’s revenue shows a positive (0.541) and significant (0.058) relationship at the 0.10 level of significance, which means that the more accessible the business situation is in the post-pandemic period, the higher Kubang Pasu Municipal’s revenue will be. The newly developed revenue source will secure local government revenues in the long term and avoid budget deficits. Kubang Pasu Municipal needs to create new revenue sources, as they are still among the local governments with low revenue sources compared to local governments in other states.

Cohesive Institutions and Political Violence

Abstract Can revenue sharing of resource rents be a source of distributive conflict? Can cohesive institutions avoid such conflicts? We exploit exogenous variation in local government revenues and new data on local democratic institutions in Nigeria to study these questions. We find a strong link between rents and conflict. Conflicts are highly organized and concentrated in districts and time periods with unelected local governments. Once local governments are elected these relationships are much weaker. We argue that elections produce more cohesive institutions that help limit distributional conflict between groups. Throughout, we confirm these findings using individual level survey data.

Tax Administration in Nigeria: A Systematic Literature Review

Tax administration is vital for national development, acting as the principal vehicle through which governments generate revenue for economic growth and public service delivery. In Nigeria, tax collection is administered by the Federal Inland Revenue Service (FIRS), State Internal Revenue Service (SIRS), and Local Government Revenue authorities. These entities gather funds to support crucial infrastructure, healthcare, education, and other critical services. However, Nigeria faces significant challenges in tax administration, including rampant tax evasion, a substantial untaxed informal sector, corruption, and complex tax legislation. These issues hinder the government's capacity to generate sufficient revenue for national development. This systematic review analyzes the existing literature on tax administration in Nigeria from 2018 to 2024, addressing three key questions: (i) What are the primary obstacles in tax administration? (ii) How does tax administration influence government performance and revenue generation? (iii) What measures have been suggested or implemented to improve tax administration efficiency? Through a comprehensive search of databases such as Research gate, PubMed, JSTOR, Google Scholar, and others, this study finds noteworthy discoveries linked to recent tax reforms, such as the implementation of the Tax Identification Number (TIN) system and the Voluntary Assets and Income Declaration Scheme (VAIDS), have had a mixed impact on revenue generation. The use of technology, including e-tax systems, has enhanced tax compliance but faces challenges related to internet connectivity and cyber security. Additionally, the informal sector remains largely untaxed, posing a significant challenge to expanding the tax base. The implications of these findings highlight the need for further reforms in tax administration. Streamlining tax regulations, enhancing technological infrastructure, combating corruption, and improving taxpayer education are essential steps for increasing revenue collection. Addressing these challenges will not only boost revenue generation but also promote sustainable economic growth in Nigeria. Policymakers and stakeholders can leverage these insights to build a more efficient and transparent tax system, thereby contributing to overall economic and social stability.

Financial Performance Analysis of Local Government: A Case Study on Karanganyar Regency

The purpose of this study is to analyze the financial ratios of the Karanganyar Local Government Budget Realization Report for the 2017-2022 fiscal year, with a quantitative descriptive method at the Local Finance Agency (BKD) of Karanganyar Regency. Data were sourced from the budget realization reports, scientific articles, and interviews. Data were collected through document analysis and interviews. The components analyzed include the financial independence ratio, financial growth ratio, effectiveness ratio of original local government revenue (PAD), and local financial efficiency ratio. This study has found a low financial independence ratio of an average of 23.62%. The average PAD growth ratio was 5.14%, local income was 1.98%, operational expenditure was 1.80%, and capital expenditure was 3.72%. The PAD effectiveness ratio was classified as very effective with an average of 107.22%, and the financial efficiency ratio showed a moderate level with an average of 87.17%. This study concludes that the financial performance of the Local Government of Karanganyar Regency needs to be improved. The researchers recommend the government diversify sources of income, evaluate project management, and utilize information technology. Thus, this study provides guidance for the Local Government of Karanganyar Regency in improving the local financial performance.

Bimbingan Teknis Pendataan Massal Wajib Pajak Daerah Kabupaten Tegal Berbasis Nomor Induk Kependudukan Bagi Perangkat Desa Kecamatan Jatinegara Kabupaten Tegal

The Tegal Regency mass taxpayer data collection program based on population identification numbers for Jatinegara sub-district village officials is a program carried out by the Tegal Regency regional government to collect data on how many tax objects are owned by residents in each sub-district. This program was carried out with the aim of providing the government with data that would later be used to calculate how much tax would be paid by taxpayers in each village. Keep in mind that taxes are one of the largest revenues for local governments. In Jatinegara sub-district, the amount of data that has been input and verified is 80% greater than in the other 6 sub-districts. This is because the village operator in charge of input can be committed to making the program a success.