Own-source Revenues Research Articles

Effect of Government Investment and Capital Participation on Local Own-Source Revenue: The Case of Indonesia

This research aims to investigate the implications of regional asset growth, intangible assets and capital participation to the local revenue as a moderating variable. This study offers a new insight on examining the role of government income sources in improving the local government revenue, and by combining with quantitative method to examine the regional financial performance of West Java Provincial Government between 2012 and 2016. The study examines whether the capital participation of local government on the local state-owned enterprises influences the government income. This is considered interesting to examine, regarding the fact that there is a common perception that the duties of local government are only to exercise public service and run the central government policy. The sample used in this study includes the entire districts and municipalities that present information consistently during the research period. The data analysis was conducted using the Moderated Regression Analysis, which focus on the absolute difference test. The results of this research show that the growth of fixed assets has a significant positive effect on regional revenue, while the growth of fixed assets moderated by the inclusion of capital has an insignificant effect on the regional revenue.

Pengidentifikasian pendapatan dan prioritas penggunaan dana desa

The village fund and village fund allocation policies which have implemented since 2015, require the village apparatus to manage the village budget skillfully in order to optimize the using of it. Bulutengger village in East Java is also expected to be able to synergize the prior programs of village development and community empowerment, while keep following the regulations. This study aims to identify the revenue and the prior allocation which are included in the planning phase based on Minister of Home Affairs Regulation (Permendagri) no. 113 of 2014 on Village Financial Management. This study was conducted by using the qualitative method and descriptive approach. This study finds that the most sources of revenue in Bulutengger Village are village funds, village fund allocation, and village own-source revenue (PADes). The priority of village fund was based on Regent Regulation of Lamongan no. 10 of 2017 on Technical Guidelines for Implementation of Village Fund Financial Management Activities of 2017 Fiscal Year. The priorities are the village development (construction of concrete rebate roads), and community empowerment (integrated service post activities/Posyandu). The using of village fund was also considering the problem statement and the potentials of village in Medium-Term Development Plan of Bulutengger Village (RPJMDesa) 2015-2020. However, most village apparatus is still depended on the head of village to manage the village budget because of the lack of information and knowledge on it.

Local Responses to School Finance Equalization: Wealth Or Place?

Over the past 50 years, a combination of court cases and legislative actions has greatly reduced the variance in revenues across school districts within states by removing local property tax as the major revenue source for schools. This paper examines a single state, Kentucky, over a long period of time to examine the extent to which localities can offset state efforts to remove property wealth as the basis of revenue disparities. the empirical results suggest that even in a state with a strong state education reform and constraints on revenues, the property wealth of localities continues to enter as a significant determinant of local contributions to education that exceeds to some degree the state efforts to offset inequality among districts. Indeed, wealth exhibits a stronger effect on revenues now than when the reform was introduced. Moreover, in Kentucky, the districts located in the Appalachian region of the state continue to contribute less own-source revenues not because of the property wealth differences but because of other “place-based” factors that cannot be captured in the data.

The Effect of Regional Own-source Revenue, Tax Revenue-sharing Fund, General Allocation Fund and Special Allocation Fund to the Human Development Index (Based on the Study of Provincial Government in Indonesia)

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Implications of Medicaid Financing Reform for State Government Budgets

We analyze potential reforms to Medicaid financing through the lens of fiscal federalism. Because substantial dollars are at stake, both the economic and political sides of intergovernmental transfers have high relevance in this setting. We show that changes in Medicaid financing formulas can shift amounts exceeding several hundred dollars per capita from “winning” states to “losing” states. In some cases, these amounts exceed 10% of states’ own-source revenues. States’ balanced budget requirements imply that such changes would, if not phased in gradually, require significant budgetary adjustment over short time horizons. We next show that alternative Medicaid financing structures have significant implications for states’ exposure to budgetary stress during recessions. During the Great Recession, an acyclical block-grant structure would have increased states’ shortfalls by 2–3.5% of own-source revenues relative to either an explicitly countercyclical block grant or the current matching system. Finally, we assess the implications of several financing structures for the extent to which they subsidize states’ decisions on both the “extensive” and “intensive” margins of coverage generosity over the short and long term.

Policy regime and policy change: Comparing the phenomenon of local government before and after regional autonomy

This research aims to evaluate the financial performance of four municipalities (Bengkulu City, Rejang Lebong Regency, South Bengkulu Regency, and North Bengkulu Regency) in Bengkulu Province, Indonesia. The study also identifies the contribution of several financial variables before and after the implementation of regional autonomy. Theoretically, regional autonomy enables these four municipalities to manage their Local Own-Source Revenue (LOSR or PAD - Pendapatan Asli Daerah) better because these municipalities now have to learn to manage their financial resources independently. However, the findings indicate that these four municipalities still exhibit a high financial dependency on the central government or the fiscal balance fund. Consequently, the contribution of LOSR to the total income is still low. Besides, the study finds that these four municipalities exhibit a sufficiently good efficiency ratio but a fluctuating LOSR growth ratio, especially in some municipalities before the proliferation of new municipalities. Further, the main variables of the degree of financial decentralization, local financial autonomy, efficiency, and LOSR growth do not exhibit significant differences between the pre- and post- regional autonomy implementation.

Determinan penerimaan daerah dan pertumbuhan ekonomi terhadap pengembangan ekonomi kreatif di Provinsi Jambi

This study aims to analyse: (1) Contribution of regional revenue to economic growth, and analyse the development of regional revenues represented by the development of Local Own-source Revenue (PAD), General Allocation Funds (DAU), Special Allocation Funds (DAK), Revenue Sharing Funds (DBH) and also analyze the development of the economic growth rate of regencies / cities in Jambi Province. This research is intended to obtain answers to how much influence PAD, DAU, DAK, and DBH influence towards the development of creative regencies / cities in Jambi Province both partially and simultaneously and from all the independent variables to be examined. The results of this study indicate that the highest growth of the processing industry is located in Tanjung Jabung Barat district and the variables that have a significant and significant influence on the processing industry in the Regency / City in Jambi Province.

Fiscal Soundness and Economic Growth: An Economic Program for Ontario

Ontario is on an unsustainable fiscal course. The government must act to bring the long-term cost of government in line with the revenue-raising capacity of the province. This Economic Program shows a number of policy directions in areas as diverse as healthcare, labour and education policy, tax reform, housing and municipal policy, as well as electricity and greenhouse gas policy, that can balance increases in spending with the generation of new revenues and cost-savings measures. This Economic Program adopts the fiscal presentations of the independent officers of the Ontario legislature – the Auditor General and Financial Accountability Office – as the authoritative sources for the short-, medium- and long-term fiscal outlook. The medium- and long-term fiscal outlook for Ontario is dire. This Economic Program recommends that the government restate the province’s books to reflect the Auditor General’s accounting treatment of pension assets and electricity-sector debt. Further, the government should adopt a sound long-term fiscal policy – which requires surpluses, not just balanced budgets – that meets the government’s debt-to-GDP target ratio of 27 percent. In healthcare, which already consumes roughly half of the province’s own-source revenues, policymakers will face continued cost pressure. This Economic Program views progress in addressing this issue – in addition to limiting public and private gaps in coverage for prescription drugs and mental health – as a critical challenge. This Economic Program also focuses on reforms to labour and employment legislation to increase the flexibility of existing minimum wage policies and employment and labour laws. It also focuses on improving the skills of Ontarians seeking mid-career improvements, and improving the performance of Ontario’s K-12 and post-secondary education systems. With recent United States tax reform considerably raising the attractiveness of the United States for new business investment, this Economic Program takes steps to improve the competitiveness of the province as a destination for firms to make investments and for workers to live. With regard to housing and municipal policy, this Economic Program seeks to lower the cost of housing across the province by taking steps to reduce barriers to construction and eliminating economically costly rent controls and transfer taxes. It would also fundamentally change the relationship between municipalities and the province by granting cities the ability to put their budgets on a sound financial footing and allow them more flexibility in financing infrastructure. Finally, no policy area has been more controversial than Ontario’s greenhouse gas and electricity policies. This Economic Program would preserve the best parts of the current government’s plan, while cutting ineffective policies and reducing costs to households. This Economic Program would seek long-term cost savings in the electricity sector, as opposed to short-term fixes that only add to the long-term cost of energy.

Analysis of Potentiality and Projection of Market Service Levy Revenue in Semarang Regency

Market service levy is a kind of public service levy that is potential enough because Semarang Regency manages the levies from 33 traditional markets every day. The objective of this research is to analyze the potentiality of market service levy revenue in Semarang Regency in 2011-2015 and to find out the projection of market service levy in 2016-2010. This research uses the analysis of contribution, the analysis of growth, the analysis of potentiality, and the analysis of ARIMA (2,1,2) (Auto Regressive Integrated Moving Average). The results of this research show as follows: (1) the contribution of market service levy to the regional levy and PAD (the own-source revenue) is in the insufficient and very insufficient category, (2) the growth of market service levy is fluctuating, (3) the market service levy revenue has not based on the potentiality yet, (4) the target of market service levy is under the potentiality, and (5) the projection of market levy revenue will increase in the next five years. The researcher suggested that the target setting should be based on the potentiality and the quality of market service should be improved, so that those may increase the contribution of market service levy to PAD.

EFFECTS OF FISCAL DECENTRALIZATION ON POVERTY REDUCTION IN KENYA

The Kenya government has instituted fiscal decentralization over the years to promote social economic development, reduce poverty and income inequality and ensure balanced regional development. Despite these efforts, poverty levels have remained high in Kenya. The literature on the relationship between fiscal decentralization and poverty has been rather inconclusive about the effects of fiscal decentralization on poverty. The main objective of this paper was to analyse the effects of fiscal decentralization on poverty in Kenya. Using cross-county panel data from 2002 – 2014 and published data from government agencies, UNDP reports and World Bank reports, the paper estimated various empirical models to analyse the effects intergovernmental transfers, sub-national own-source revenue and county expenditure on poverty in Kenya. The study established that the effect of fiscal decentralization on poverty depends on the nature of decentralization and the extent of fiscal decentralization as well as the county specifics. The paper therefore, recommends the need for for county governments to have adequate own-source revenue to finance their expenditure as opposed to relying on intergovernmental transfers from national government.

Does Customs Facilitation Programs help enchance Regional Economic Growth ?

To date, measuring the effect of customs facilitation and fiscal decentralization are seen as essential to assist regional government. This activities are important in order to direct the regional economic growth policy. The customs facilitation is important because this policy could reduce the tax rate in trade activities. While the fiscal descentralization gives the local governments higher authrority to manage their funds. The local government s need an assurance, regarding the relationship between the utilization of customs facilitation and the fiscal descentralization to their regional economic growth, in order to optimize the benefit of this instrument. This research describes the relationship between Customs facilitation, namely Free of import duty and import taxes, fiscal decentralization, namely own-source revenue and general allocation grant, to the regional economic growth in West Java. The panel data from 2012 to 2015 and regression analysis are used in this paper. The result implies that the customs facilitation, in the form of cooperation with Indonesia Investment Coordinating Board import taxes, has a positive and significant impact on regional economic growth.

PENENTUAN STRATEGI PENINGKATAN RETRIBUSI PELAYANAN PERSAMPAHAN/KEBERSIHAN PERMUKIMAN DI KABUPATEN SITUBONDO

Abstract: The regional readiness to implement regional autonomy is measured from its financial capability that mainly sourced from the Regional Own-Source Revenue (PAD). The problem is that regional retributions as one of the PAD’s components have not been able to contribute significantly to the overall regional revenue. One of the causes is the lack of potential sources exploration. This also happened to the retribution of the waste management services of the settlement in Situbondo Regency. This study aims to identify opportunities, threats, strengths, weaknesses, and strategies that can be applied to increase the waste management services of the settlement in Situbondo Regency. The strategy is formulated by using Internal External (IE) and Strengths, Weaknesses,Opportunities, and Threats (SWOT) matrixes. Findings of the research show that opportunities and threats are consisted of the potential retributions payer, increasing numbers of housing, public awareness, parliament control, retribution rates, sanctions for the retribution payer, and competitors. The strengths and weaknesses are consisted of coordination between legislative party and relevant insitutions, the quantity and quality of the retribution collector, waste services, leakage control, quantity of the waste hauler, facilities and infrastructure, socialization, SOP, retribution tariff, and retribution contribution to the PAD. The main strategy to increase the revenue from the waste management service is the expansion strategy in the form of extensification by extending the coverage area of the retribution.
 Keywords: Strategy, Waste Services Retribution, Settlements.

Development of Aceh iron sand to produce pig iron: studies on hardness properties

Aceh is one of provinces in Indonesia that produces iron sand. However, Aceh iron sand has been sent to other countries in the raw form instead of the processed one, which actually can add significant economic value to the minerals and eventually can contribute to the increased Aceh’s PAD (Regional Own-source Revenue) as well as support national industry. A study has been carried out to develop of Banda Aceh iron sand to produce pig iron using reduction processes. Hardness tests and characterization of mineral were performed and the results are reported. The results show that the average hardness properties of both the sponge and the pig iron were 282, 22 HV and 377,178 HV, respectively. Chemical composition of pig iron is 2,71%C, 2,5%Si, 0,13%S, 0,12%Cr, 0,54%Mn, 0,74%Ti, 0,94%Al, 0,2%V and 92%Fe.

PENGARUH MANAJEMEN ASET TERHADAP PENDAPATAN ASLI DAERAH PEMERINTAH KABUPATEN DAN KOTA DI JAWA BARAT

Conducted in the local cities and district government in West Java this research was tookon 2014 period. The phenomenon encountered in the field is the embodiment of autonomy in theform of asset management that gave a less improvement to the local own-source revenue. The objective of this study is to determine how much influence of the asset managementon local own-source revenue Cities and District Local Government in West Java. Research method that used in this research were descriptive and verification method withstatistical testing using Simple Linier Regression with secondary data. Sampling method used isto take all of population called census. The results showed that asset management has a significant effect on the local ownsourcerevenuewithapositivedirection,thatmeanthehigherassetmanagementpoint,thehigherlocalown-sourcerevenuewillbe.ThenThestrengthoftherelationshipwasindicatedashighcorrelation.

ANALISIS TINGKAT PERTUMBUHAN PENERIMAAN PAJAK PENGAMBILAN BAHAN GALIAN GOLONGAN C DI KABUPATEN KEPULAUAN SANGIHE

Own-Source Revenue is a source of regional financial and funding of the government. One of the revenues comes from local tax, which is the tax on utilization of mineral group C, especially in Sangihe islands regency. This research was conducted to find out how big the growth rate and contribution of mineral group C-tax to original income in regency of Sangihe islands in 2011-2016. This research had used a qualitative approach to the type of descriptive research, namely analyzing the data target and realization of utilization of mineral group C in 2011 using the ratio of growth rate and contribution.The results showed the acceptance realization of mineral group C-tax still fluctuate or vary. The growth rate of mineral group C-tax in Sangihe islands regency with fluctuate number and tends to be negative. The average growth rate of mineral group C-tax reached 10.53%. The growth rate considered to be unsuccessful, this is due to lack of public awareness in paying local taxes, especially mineral group C-tax. Mineral group C ia also provide a very low contribution. The contribution of mineral group C-tax as the own -source revenue for the last six years is enough maximal and included in the criteria of "moderate" contribution. The result of the analysis obtained an average contribution rate of only 27.28%. Keywords : minnerals group c-tax, own-source revenue, growth rate and contribution

ANALISIS EFEKTIVITAS DAN KONTRIBUSI PAJAK BUMI DAN BANGUNAN PERDESAAN DAN PERKOTAAN (PBB-P2) SEBAGAI SUMBER PENDAPATAN ASLI DAERAH KABUPATEN MINAHASA, KABUPATEN MINAHASA UTARA, DAN KOTA MANADO

The collection of land and building tax is based on law no. 12 year 1985. Land and building tax for rural and urban district is a new potential income for own-source revenue. The purpose of this research is to find out the effectiveness and contribution of land and building tax for rural and urban district as a own-source revenue for Minahasa District, Northern Minahasa District, and Manado City. This research uses the qualitative descriptive method. Method that used for data collection in this research is direct interview with the parties appointed by the Local Revenue Office in each district. Result of the research shows that the effectiveness of land and building tax for rural and urban district for Northern Minahasa District is 103,26% (very effective), Manado City is 95,52% (effective), and Minahasa District is 69,78% (less effective). The contributions of land and building tax for rural and urban district for own-source revenue for Northern Minahasa District is 17,27% (less), Manado City is 9,46% (very less), and Minahasa District is 5,29% (very less).Keyword : PBB-P2, income, effectiveness, contributions

The Influence Of DAU (General Allocation Fund) And DAK (Special Allocation Fund) On Capital Expenditure Of Bali Province

Due to the governmental implementations and services to the public in accordance with the decentralization principle, the regional areas have the authority to collect taxes/levies and manage the Natural Resources ( SDA ). The regional areas’ funding sources consist of Own-Source Revenue ( PAD ), Fiscal Balance/Revenue Sharing Fund ( DBH ), General Allocation Fund ( DAU ) and Special Allocation Fund ( DAK ) which are directly managed by the regional government through its Regional Revenue and Expenditure Budget ( APBD ). This research aims at analyzing the influence of PAD, DAU, and DAK on capital expenditure of Bali province. The research population is all city/regency governments in Bali. This research employs a census method involving all Regencies and municipalities in Bali Province. The data are the regional government expenditure realization during the period of 2010 to 2015. The results show that PAD does not significantly influence Capital Expenditure, while DBH, DAU , and DAK significantly influence Capital Expenditure.

Political Determinants of Local Government’s Fiscal Activities : Analyzing Metropolitan City and Province’s Own-Source Revenue in South Korea

Political Determinants of Local Government’s Fiscal Activities : Analyzing Metropolitan City and Province’s Own-Source Revenue in South Korea

An Overview of the State and Local Government Pension/OPEB Landscape

It is impossible to discuss municipal finance without considering the cost of pensions and other post-retirement employee benefits (OPEB), the largest of which is retiree health insurance. These costs have received enormous press coverage, usually incorporating sweeping generalities about the burden of employee post-retirement benefits for the nation as a whole. Much is made of the bankruptcies in specific jurisdictions. At the state level, the most poorly funded pension plans are often described as typical, while the states that provide reasonable benefits, pay their required contributions, and accumulate assets are overlooked. The picture at the state and local levels is extremely heterogeneous, so it is crucial to look at the numbers state by state and locality by locality. This article provides a comprehensive accounting of pension and OPEB liabilities for state and local governments and the fiscal burden that they pose. The analysis covers the plans of 50 states, 178 counties, 173 major cities, and 415 school districts related to the sample of cities and counties. The analysis apportions the liabilities of state-administered cost-sharing plans to participating local governments for a more accurate picture of which governmental entity is actually responsible for funding pension and OPEB liabilities. The cost analysis calculates, separately, pension and OPEB costs as a percentage of own-source revenue for states, cities, and counties and then determines the overall burden of these programs. Finally, it adds debt service costs to provide a comprehensive picture of government revenue commitments to long-term liabilities.

The Impact of Fiscal Decentralisation on Local Economic Development in Montenegro

The goal of the paper is to determine the extent to which local governments in Montenegro have managed to direct their increasing fiscal autonomy towards supporting local economic development. Our analysis of local business support programmes has shown that local governments have space to improve their business environments and business support programmes. Econometric analysis of data for 21 municipalities for 2007-2014 period, showed that the increase of own-source and shared revenues has a positive impact on local economic development. However, these findings are insufficient to conclude the extent to which decentralisation influences economic development and identify channels whereby it exerts this influence.