Own-source Revenues Research Articles

Effect of Regional Genuine Revenue and General Allocation Funds on Economic Growth with Regional Expenditures as Intervening Variables (Study On the Regencies/Cities in East Java 2019-2021)

Purpose: The objective of this study is to determine the importance of regional expenditure mediation in the correlation between regional original income, general fund allocation, and economic growth.
 Methodology: The study sample is 38 districts or cities within the East Java Province. Employs quantitative research methods and utilizes secondary data collection techniques. The utilized data consists of the actualization of regional own-source revenue, general allocation funds, and expenditure categories, along with the rate of regional gross domestic product based on constant prices. The present study employs the total sampling technique. The research using the SmartPLS 3 software application.
 Findings: Local Own Revenue and General Allocation Funds have a significant effect on Regional Expenditures. Local Own Revenue is found to have a significant influence on Economic Growth, whereas General Allocation Funds do not exhibit a significant impact on Economic Growth. Regional Expenditures have note a direct effect on Growth of economics. Regional Expenditures do not act as a mediator between Regional Original Income and General Allocation Funds with Economic Growth.
 Implications: The research suggests that the government has the opportunity to enhance local economic growth by maximizing local sources of income by prioritizing the allocation of funds from the regional budget and regional development budget in a manner that aligns with effective budget management practices. By doing so, the government can ensure that the desired outcomes are achieved and that there is a positive correlation between budget allocations and actual results.

THE FLYPAPER EFFECT PHENOMENON OF INTERGOVERNMENTAL TRANSFERS DURING THE COVID-19: EVIDENCE FROM INDONESIA

This study aims to confirm the flypaper effect phenomenon and the impact of the Covid-19 pandemic on local own-source revenue (LOR), general allocation fund (GAF), and local government financing on local government expenditure in Indonesia. The research used a quantitative method, while the sample was data on regional government budget (RGB) realization in 335 local governments in 2019 – 2020. The data were analyzed using Moderating Regression Analysis. The study found that there was a flypaper effect phenomenon that encouraged the local governments to use GAF, instead of LOR for their local expenditure. The GAF and local government expenditures were higher during the Covid-19 period. To overcome the flypaper effect phenomenon, the central government is advised to improve the GAF policy by setting priorities for its use. Local governments must encourage micro, small, and medium enterprises to help support LOR. This study proves there exists the phenomenon of the flypaper effect in developing countries that implement the presidential system (republic) and provide substantial empirical evidence on government spending policies during crisis and non-crisis (Covid-19).

Does Flypaper Effect Really Exist? Evidence From Government Budget in East Indonesia

Regional autonomy is one form of policy from the Indonesian central government to encourage independence from every existing local government, but at the same time, it also creates economic inequality. To make it balanced, the central government provides transfer funds for every local government that needs it. However, the dependence of the local government on the central government transfer funds has led to the phenomenon called the Flypaper Effect. This study aims to see the effect and the existence of a flypaper towards Local Own-Source Revenue (Pendapatan Asli Daerah), General Allocation Fund (Dana Alokasi Umum), Special Allocation Fund (Dana Alokasi Khusus), Revenue Sharing Fund (Dana Bagi Hasil) and Local Expenditure. This study relays on audited financial statements of local governments in 11 provincial governments located in Eastern Indonesia from 2012-2017. It uses E-views to test the hypothesis. The results show that only the Special Allocation Fund does not affect Local Expenditure. Furthermore, in Eastern Indonesia, there is an existing flypaper effect phenomenon. The regional autonomy policy implementation still needs to be improved. The central government needs to motivate the local government potencies to maximize their original revenue and consider for adjust the policy itself.

Maturity of Internal Control System, the Capability of Internal Auditors, and Performance Accountability in Local Governments

While research on the accountability of local government performance has grown significantly, little attention has been paid to the critical success factors, particularly the role of the maturity of the government's internal control system and the capability of the government's internal auditors. This study examines the effect of the maturity of the government's internal control system and the capability of the government's internal auditors on the accountability of local government performance, with control variables, namely audit opinion, local own-source revenues, and proliferation status. It aims to fill the gap using the Indonesian case. This study uses secondary data with sample selection using the purposive sampling method. Local governments in Indonesia from 2017 to 2019 are used as samples. The results of this study indicate that the government's internal control system's maturity, internal auditors' capability, and audit opinions positively affect local governments' performance accountability. In contrast, local own-source revenues and proliferation status negatively impact local governments' performance accountability. The implication of this study is to increase the accountability of local government's performance and continue to improve the maturity of the government's internal control system to achieve at least level 3 (Integrated). The capability of internal government auditors needs to achieve at least level 3 (Defined); thereby, the internal control function of local governments can be optimal.

Analysis of potential factors of financial statement disclosure: Evidence from Indonesian local government

This study explores the relationship between the number of local parliamentarians, local government budget expenditures, Java/non-Java jurisdiction, liabilities, and Local Own-source revenue and financial statement disclosure. It relies on multiple theoretical frameworks and uses a sample of 180 local government financial reports in Indonesia for 2021 that have been audited by the Indonesian National Audit Board. Using the SPSS Version 25 program, multiple regression analysis was used in this study to assess hypotheses. The results found that Java/non-Java jurisdiction (β = 0.259; p < 0.05) and Local Own-source revenue (β = 0.321; p < 0.05) affect the disclosure of financial statements. In addition, the number of local parliamentarians (β = 0.071; p > 0.05), local government budget expenditure (β = 0.038; p > 0.05), and liability (β = 0.005; p > 0.05) does not affect the disclosure of financial statements. The contribution to local government is to analyze potential aspects related to the government’s increased pressure to make financial statement disclosure. The use of information technology to meet social demands more effectively and efficiently is one option for regional governments to disclose their financial statements.

Strategy for Increasing PAD from Rural and Urban Land and Building Taxes in Ciamis Regency

The main problem of this research is the delegation of PBB–P2 as an effort to increase Local Own-Source Revenue (PAD) is still far from expectations. This research aims to analyze the effectiveness of policy implementation strategies to increase Local Own-Source Revenue (PAD) from the Rural and Urban Land and Building Tax (PBB-P2) in Ciamis Regency. Specifically, this research uses Fred David's theory, where he frames the strategy formulation in three stages, namely, Input Stage, Matching Stage and Decision Stage. The method used in this research is a descriptive research method with a qualitative case study approach. Policy implementation strategy that effectively for the delegating Rural and Urban Land and Building Tax (PBB-P2) into local tax to increase local own-source revenue in Ciamis Regency is a strategy in Quadrant I of the Grand Strategy Matrix which has a superior strategic position , and recommended choosing alternative strategies, namely concentric diversification strategies.

Pengaruh Sektor Pariwisata Terhadap Pendapatan Asli Daerah Kabupaten/Kota Di Daerah Istimewa Yogyakarta Tahun 2011-2020

Local Own-Source Revenue is revenue that comes from regional original economic sources. One of the steps to increase PAD is by optimizing the potential in the tourism sector. This study aims to analyze the effect of the number of tourist objects, the number of cultural attractions, the number of hotels and the number of restaurants on the districts/cities Local Own-Source Revenue in the Special Region of Yogyakarta in 2011-2020. In this study using quantitative methods. The type of data used is secondary data sourced from the Directorate General of Fiscal Balance (DJPK), and the Department of Tourism and Culture with the data used is panel data of 5 districts/cities in the Special Region of Yogyakarta. The analytical tool used is panel data regression using eviews 9, and using multiple linear regression as hypothesis testing. The results of this study indicate that the number of tourist objects and the number of hotels have a positive and significant effect on local revenue, while the number of cultural attractions and restaurants have no effect on Local Own-Source Revenue.

ANALISIS FLYPAPER EFFECT PADA PAD DAN DAU TERHADAP BELANJA DAERAH KABUPATEN/KOTA DI KIB DAN KIT

This study aims to determine whether there is the flypaper in the western region of Indonesia and eastern region of Indonesia. This study uses a quantitative approach with Fixed effect model (FEM) as its method. This study uses secondary data that obtained through DJPK Ministry of Finance’s website to get Local Own-source Revenue (LOR), General Allocation Fund (GAF), Regional Expenditure and Central Bureau of Statistics to get population that used as control variable during the 2010-2020 period. The result of this study indicate that LOR, GAF, and population has a positive effects on regional expenditures. The flypaper effect also occurs in the western region of Indonesia and eastern region of Indonesia

PERTUMBUHAN EKONOMI DAN PENDAPATAN ASLI DAERAH: STUDI EMPIRIS ATAS KORELASI RESIPROKAL

This study aims to analyze the reciprocal effect between economic growth and local own-source revenue. The research scope of this study is based on Java—Bali region in 2015—2019. Using purposive sampling, the data used in this research is taken from the DJPK and BPS websites. The method of this study is analyzed with the two-stage least square (2SLS) panel data regression method with cross-section random effect model as well as white-cross section covariance coefficient in the GDRP equation and period weights (PCSE) in the LOR equation. This research managed to prove the significant positive reciprocal effect between economic growth and LOR. Other factors related such as General Allocation Fund, Revenue Sharing Fund, and HDI in the GDRP equation also have a significant positive influence on economic growth. Meanwhile, labor, local taxes, and local retributions variables also own similar results on LOR. However, Special Allocation Fund and population has significant negative effect on economic growth and LOR, respectively. Moreover, capital expenditure with a lag of two years shows a negative and insignificant effect on economic growth.

Evaluation Of Serang City Regional Regulation Number 17 Of 2010 Concerning Local Taxes in Serang City (Case Study of Hotel Tax on Boarding Houses)

The focus of this research is the evaluation of Serang City Regional Regulation Number 17 of 2010 concerning Local Taxes, especially Hotel Taxes on Boarding Houses in Serang City. In this evaluation, there are several problems in the implementation of the policy, such as the number of boarding houses with more than ten rooms not recorded by the Regional Revenue Agency (Regional Revenue Agency (Bapenda) Kota Serang, which makes boarding house owners with hotel tax categories not registered as taxpayers; Low level of awareness of hotel taxpayers on the boarding house of Serang City; The weak role of the government in approaching the taxpayer or going directly to the field; and the lack of socialization carried out by Regional Revenue Agency (Bapenda) Serang City. The theory used is the evaluation theory developed by Daniel Stufflebeam consists of four stages of evaluation aspects, namely CIPP. The qualitative descriptive method provides an overview of data analysis techniques using the Irawan model. The result of this study is that the implementation of the hotel tax policy on boarding houses in Serang City has not been running optimally. The hotel tax rate onboarding houses at a rate of 10% is still felt objection by the hotel taxpayer on the boarding house to make the taxpayer in arrears to pay the local tax. The lack of human resources, which is an important element in the success of policies that have data collection, registration, reporting, and evaluation of hotel taxes on boarding houses, is still experiencing a shortage. The available facilities and infrastructure are still inadequate. Socialization is still not optimal and thorough, so information about hotel tax policies on boarding houses is not conveyed properly, and weak enforcement of sanctions. Not yet optimally the contribution of hotel taxes on boarding houses to the Local Own-Source Revenue of Serang City Area from the regional tax sector.

A Study of Prospective Local Own-Source Revenues in Central Mamuju, Indonesia

The local own-source revenues is crucial to be addressed. This study aims to provide an overview of the taxes and levies revenue and analyzes prospective local own-source revenues in Central Mamuju Regency. It uses primary and secondary data collected with direct observation in the field of research, literature study, in-depth interview, and focus group discussions (FGD) with stakeholders. The observation and literature study took place on several objects of taxes and levies: ten items of tax and eight items of retribution. Furthermore, the in-depth interview and online FGD were conducted. As a result, the potential for revenue from regional taxes and levies in Central Mamuju Regency is still more significant compared to the targets and realizations that the Central Mamuju government has initiated. Therefore, other potentials have not been optimized as a source of regional income. For instance, terminal retribution, market retribution, and waste retribution, after an in-depth study, the actual amount of potential is greater than the target set by the local government and the realization that has been achieved. Therefore, it requires more attention from the government to optimize the existing potential to increase local revenue.

The Impact of Hotel Tax Revenue in the COVID-19 Era as an Increase in Regional Original Income in Indonesia

The sharing economy as a new business model is certainly a challenge for the Government to make policies related to this digital transaction. Governments are generally slow to accommodate new business models. On the other hand, sharing economy companies have a great potential as they provide accommodation services. The purpose of this study is to analyze the challenges in increasing the revenue of Local Own-Source Revenue and the revenue opportunities from the expansion of the Hotel Tax Object due to the emergence of various types of sharing economy companies in Indonesia. The method used a qualitative method with data collection through literature study of various publications related to the theme. The results of the study show that in the collection of Hotel Taxes there are challenges in efforts to increase the revenue of Local Own-Source Revenue in Indonesia. First, the impact of Sharing Economy Companies on Hotel Tax Revenue through online platforms can cause a potential tax loss. Second, the impact of the COVID-19 pandemic on hotel industry business activities in the causes of business closures and decline revenue. Furthermore, in the collection of Hotel Taxes, there is an opportunity to increase the revenue of Local Own-Source Revenue in Indonesia, namely (1) the expansion of the Hotel Tax object through the improvement of the Law on Regional Taxes and Regional Levies by considering a new source of Hotel Tax revenue by online platforms in the form of accommodation facilities (2) Providing tax incentives in the form of reduced rates.

Regressive revenue sourcing by local governments

Emerging work in fiscal sociology examines the intersection of race/ethnicity, inequality and taxation, and suggests that localities are increasingly turning to nontax alternatives such as fines, fees and forfeitures to fill revenue gaps and service demands. These revenue sources are regressive and discriminatory as they disproportionately affect low-income racially/ethnically minoritised groups. We assess the extent to which local municipalities in California are more dependent on regressive nontax revenue sources, and if increases are correlated with a city’s racial/ethnic composition. We use fixed-effects estimators on panel fiscal data from the California State Controller Office’s Cities Annual Reports between 2002 and 2016 for our analysis. We further exploit our time period to determine how fiscal crises like the Great Recession compound race/ethnicity-driven finance disparities. Our results suggest the proportion of Latinx/Hispanic in a city’s population is positively and statistically associated with an increase in a city’s reliance on fines, fees and forfeitures. These results suggest concerns of discriminatory and regressive revenue sourcing by local governments that further perpetuate racial inequality and poverty. In aggregate, relative to other years in our analysis, the growth rate of fines, fees and forfeitures as a portion of total own-source revenue saw higher increases during the Great Recession, a time of heightened financial insecurity among low-income, Latinx/Hispanic and Black households.

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).

ANALISIS RASIO UNTUK MENGUKUR KINERJA KEUANGAN PEMERINTAH PROVINSI JAWA TIMUR PER-KABUPATEN/KOTA TAHUN ANGGARAN 2012-2021

This research, which was conducted in East Java, attempts to identify and analyze the financial performance of regional government during the 2012-2021 fiscal years. This descriptive quantitative research uses secondary data, summarized from the 2012-2021 period budget. The population are 38 regencies and cities in East Java. This study finds that 5.2% of the regions are independent (i.e. Surabaya city and Sidoarjo regency), 2.6% are toward independency (i.e. Gresik regency), 26% are in consultative relationship pattern (i.e. Tulungagung regency, Pasuruan regency, Mojokerto regency, and Madiun city), while the rest are having low independency or in instructive relationship pattern. This study also finds that the local financial management of the 38 regencies and cities in the province is very effective; the ration between the targeted and realized local own-source revenues is higher than 100%. The financial efficiency of the regencies and cities during the research period is not quite efficient. In fact, Pacitan regency, Sidoarjo regency, and Pamekasan regency are inefficient in the said matter. Furthermore, it was also found that the local budgets of the 38 local governments during the 2012-2018 were mostly allocated to direct expenditures. However, during the 2019-2021 period, following the enactment of government regulation number 12 of 2019 concerning the changes in local own-source revenue realization format, the local governments’ expenditures were dominated by employee expenditures. Finally, this study also finds that, during the last decade, the local own-source revenues of the said local governments were not stable and tended to decline.

Pengaruh Penerimaan Pajak dan Bea Balik Nama Kendaraan Bermotor terhadap Pendapatan Asli Daerah setelah Penerapan E-Samsat

Local Own-source Revenue is income obtained by the region which is collected based on regional regulations under statutory regulations originating from various sources located in the area consisting of regional taxes, regional levies, separated regional wealth management, and other legitimate income. Local Own-source Revenue of Majalengka Regency is still not stable, as seen from the receipt of motor vehicle taxes and transfer fees for motorized vehicles which have fluctuated in realization. Therefore, this study aims to determine the effect of motor vehicle taxes and transfer fees for motorized vehicles on local own-source revenue after the implementation of e-samsat in Majalengka Regency. The research approach used in this research is descriptive analysis and verification using secondary data. The population in this study is the Realization of Regional Original Revenue Reports, especially motor vehicle taxes and transfer fees for motorized vehicles in Majalengka Regency for the 2018-2020 period. While the sample in this study was determined using the census sampling method or saturated sampling so 36 samples were obtained from January 2018 - December 2020. The analytical method used in this study was a multiple linear regression analysis carried out with the help of SPSS 25 software. Based on the research that has been done, it is obtained that the motor vehicle tax has a positive effect on local own-source revenue of Majalengka Regency and the return duty for motorized vehicles has a negative effect on the local own-source revenue of Majalengka Regency.

Pengaruh Pajak Daerah dan Retribusi Daerah terhadap Pertumbuhan Ekonomi dengan Pendapatan Asli Daerah Sebagai Variabel Intervening di Kabupaten Sidoarjo Tahun 2016-2021

This study aims to examine the effect of local taxes and local retribution on economic growth, using local own-source revenue as an intervening variable in Sidoarjo Regency in 2016-2021. This type of research is quantitative. The data used is secondary data with data collection techniques using documentation techniques. The sample selection method in this study used the saturated sampling method. The data analysis technique used in this research is to use SmartPLS 3.0. The result of this research is that local taxes and local retribution have no effect on economic growth. local taxes and local retribution have an effect on local own-source revenue. Local own-source revenue has an effect on economic growth. Local own-source revenue cannot mediate the effect of local taxes and local retribution on economic growth

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.

PENGARUH PROFITABILITAS DAN KEPEMILIKAN KELUARGA TERHADAP PENGHINDARAN PAJAK (Study Kasus Perusahaan Non Keuangan Sektor Properti dan Real Estate yang terdaftar di Bursa Efek Indonesia (BEI) Periode 2016-2019)

This research aims to analyze the effectivity and contribution of Local Taxes towards Local Own-Source Revenue in DKI Jakarta Province. The effectivity and contribution show the seriosness of regional government in exploring local own-source revenue for the development and working performance of the regional government. The research employs qualitative descriptive method as research methodology which show data without any manipulaton or changes. The source of data derived from Regional Revenue Agency of DKI Jakatya Province. The results reinforced that 2018 has higher effectivity level which are 103,23% and 2019 has lower effectivity level which at 90,485. On the other hand, 2019 has higher contribution level which are 88,23% and 2017 has lower contribution level which are 83,14%.

Flypaper effects of Central Transfers on the spending behaviour of Ghana’s central region local governments: Does status matter?

Fiscal system incentivises local government officials to depend on central government’s transfers to fund their budgets. This paper examines whether district and municipal status local government officials exhibit the same spending behaviour when presented with central government’s transfers. The paper uses the panel data model to estimate the flypaper effect on district and municipal status local governments in the Central Region of Ghana from 2008 to 2015. The result shows differences in spending behaviour between district and municipal status local governments, where the flypaper effect is more pronounced on municipal status local governments (52.6%) than district status local governments (44.8%). Though municipal local governments are financially better in raising own-source revenues compared to the district local governments, the design of the fiscal system tends to make municipal local governments more reliant on central transfers than on expenditure of own-source revenues. This reduces interest in raising own-source revenue and its expenditure, a situation which has an adverse long-term impact on decentralisation in terms of citizen empowerment and participation. The study recommends an optimal level of central transfers which will serve the purpose of correcting vertical and horizontal imbalances, as in theory, and at the same time promote the ideals of decentralisation (citizen empowerment and participation).