The Financial Performance of Regional Government on Capital Expenditure
DOI:
https://doi.org/10.5281/zenodo.4724224Keywords:
fiscal decentralization, financial effectiveness, financial efficiency, financial independence, capital expenditureAbstract
This study aims to examine the impact the financial performance of regional government on capital expenditure allocation of Central Java Province. To meet such aim, we carried out a census techniques by taking all populations as a sample. The results suggest that there is one determinant of capital expenditure allocation, namely the degree of fiscal decentralization. This factor can be a solution to the problems of this study, namely the sub optimal allocation of capital expenditure. The locally-generated revenue contributes greatly to the total amount of revenue that can be generated by the region, reflect the greater ability of the region to implement decentralization activities that will eventually impact the allocation of capital expenditure. These findings provide a better understanding for government empirical evidence about the degree of decentralization, financial effectiveness, financial efficiency, and financial independence of the allocation of capital expenditure.References
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Anggraeny, S. N., Kudhori, A., & Lestariningsih, T. 2017. Analisis Kinerja Keuangan dan Alokasi Belanja Modal Pemerintah Daerah. Jurnal AKSI Akuntansi Dan Sistem Informasi, 1, 28–35.
Anjani, E. S. D., Akram, & Handajani, L. 2015. Hubungan PAD, Belanja Modal, dan Kinerja Keuangan Pemerintah Daerah. InFestasi, 111, 20–39.
Badrudin, R. 2011. Effect of Fiscal Decentralization on Capital Expenditure, Growth, and Welfare. Economic Journal of Emerging Markets, 33, 211–223.
Carroll, D. A. 2009. Diversifying municipal government revenue structures: Fiscal illusion or instability? Public Budgeting and Finance, 291, 27–48. https://doi.org/10.1111/j.1540-5850.2009.00922.x
Delima, N. A., & Marwa, T. 2016. Kinerja keuangan daerah terhadap belanja modal untuk pelayanan publik di Sumatera Bagian Selatan. Jurnal Ekonomi Pembangunan, 142, 69–78.
Hariyati, T. R. 2012. Faktor Determinan atas Hutang Pemerintah dengan Anggaran Pendapatan dan Belanja sebagai Variabel Antara. Jurnal Akuntansi Multiparadigma, 3. https://doi.org/10.18202/jamal.2012.12.7168
Jia, J., Guo, Q., & Zhang, J. 2014. Fiscal decentralization and local expenditure policy in China. China Economic Review, 28, 107–122. https://doi.org/10.1016/j.chieco.2014.01.002
Martin, L. L., Levey, R., & Cawley, J. 2012. The “New Normal” for Local Government. State and Local Government Review, 441_suppl, 17S-28S. https://doi.org/10.1177/0160323x12440103
Muda, I., Bukit, R., Utara, S., Need, F., Control, I., Transfer, P. I., & Performance, F. 2014. The Effect Of Fiscal Potential , Fiscal Needs And Internal Control On The Provincial Intergovernmental Transfer Allocation In The Districts / Cities In North Sumatera – Indonesia . International Journal of Management and Business Research, 10, 22–35.
Muda, I., & Naibaho, R. 2018. Variables Influencing Allocation of Capital Expenditure in Indonesia. IOP Conference Series: Earth and Environmental Science, 81, 68–74. https://doi.org/10.1088/1755-1315
Normalita, I. S., Mahmud, A., Akuntansi, J., Ekonomi, F., & Semarang, U. N. 2017. Analysis of Capital Expenditure and Its Implications on Local Financial Independence. Accounting Analysis Journal, 62, 219–228. https://doi.org/10.15294/aaj.v6i2.16332
Olurankinse Felix. 2012. Analysis of the effectiveness of capital expenditure budgeting in the local government system of Ondo State, Nigeria. Journal of Accounting and Taxation, 41, 1–6. https://doi.org/10.5897/jat11.038
Pajak, P., Terhadap, D., Keuangan, K., & Daerah, P. 2012. Pengaruh Leverage, Ukuran Legislatif, Intergovernmental Revenue Dan Pendapatan Pajak Daerah Terhadap Kinerja Keuangan Pemerintah Daerah. Accounting Analysis Journal, 11. https://doi.org/10.15294/aaj.v1i1.711
Pramono, J. 2014. Analisis Rasio Keuangan Untuk Menilai Kinerja Keuangan Pemerintah Daerah. Jurnal Ilmiah Among Makarti, 7, 83–112.
Purnama, A. 2014. Pengaruh Dana Alokasi Umum, Pendapatan Asli Daerah, Sisa Lebih Pembiayaan Anggaran, dan Luas Wilayah terhadap Belanja Modal. In Fakultas Ekonomi dan Bisnis Universitas Muhammadiyah Surakarta. https://doi.org/10.1016/j.bbapap.2013.06.007
Rochmatullah, M. R., Hartanto, R., & Arifin, A. 2016. Determinating the Value of Capital Expenditure Allocation in Indonesia Local Government. Jurnal Ekonomi Pembangunan, 172, 152–166. https://doi.org/10.23917/jep.v17i2.2082
Sasmal, R., & Sasmal, J. 2016. Public Expenditure, economic growth and poverty alleviation. International Journal of Social Economics, 436, 604–618.
Sekaran, U., & Bougie, R. 2016. Reserach Methods for Bussiness A Skill-Bulding Approach.
Sosin, M. R. 2012. Decentralization, devolution, financial shortfalls, and state priorities in service programs in the early 2000s. Journal of Public Administration Research and Theory, 224, 701–730. https://doi.org/10.1093/jopart/mur067
Sriningsih, S., & Yasin, M. 2009. Dampak Dana Alokasi Umum Dau Terhadap Pemerataan Fiskal Kabupaten/Kota Di Nusa Tenggara Barat. Majalah Ekonomi Universitas Airlangga, 192, 148–162. https://doi.org/10.20473/jeba.V19I22009.4248
Sularso, H., & Restianto, Y. E. 2011. Pengaruh Kinerja Keuangan terhadap Alokasi Belanja Modal dan Pertumbuhan Ekonomi. Metode Riset Akuntansi, 12, 109–124. https://doi.org/10.16309/j.cnki.issn.1007-1776.2003.03.004
Susanti, I. 2008. Analisis Karakteristik Daya Saing Regional Kasus Kabupaten/Kota Pulau Jawa Tahun 2003. In Jurnal Ekonomi dan Pembangunan Indonesia Vol. 9, Issue 1, pp. 17–42. https://doi.org/10.21002/jepi.v9i1.143
Tamawiwy, J., Sondakh, J. J., & Warongan, J. D. . 2016. PENGARUH KINERJA KEUANGAN PEMERINTAH DAERAH TERHADAP BELANJA MODAL UNTUK PELAYANAN PUBLIK Studi pada kabupaten dan kota di Provinsi Sulawesi Utara. Jurnal Riset Akuntansi Dan Auditing “Goodwill,” 72, 103–124. https://doi.org/10.35800/jjs.v7i2.13555
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Published
2021-04-26
How to Cite
Ishak, J. F., Sudradjat, S., & Mai, M. U. (2021). The Financial Performance of Regional Government on Capital Expenditure. Jurnal Riset Terapan Akuntansi, 5(1), 11–17. https://doi.org/10.5281/zenodo.4724224
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