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All Journal Akbis: Media Riset Akuntansi dan Bisnis
Saiful Badli
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Economics, Econometrics & Finance

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Efficiency Analysis of Central Government Transfer Funds to the Regions Income Inequality Helmi Noviar; Syahril Syahril; Saiful Badli; Yunidar Purnama Sari
Akbis: Media Riset Akuntansi dan Bisnis JURNAL AKBIS VOLUME 7 NOMOR 2 TAHUN 2023
Publisher : Universitas Teuku Umar

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.35308/akbis.v7i2.7571

Abstract

The government spending budget in the form of transfers to the regions is the government's effort to reduce income inequality in every region in Indonesia. Therefore, this study aims to analyze income inequality through the government budget to regions, including transfers of balancing funds and transfers of special autonomy funds and adjustments using the estimated Gini Ratio. This study uses secondary data from 2007 to 2020 sourced from the Ministry of Finance of the Republic of Indonesia and the Indonesian Central Bureau of Statistics. The analysis results show that the estimated transfer allocation of funds to the regions for income inequality has not been efficient, with a technical efficiency ratio of an average of 0.95 of the potential budget spent with realization based on estimates frontier regression line. This means there is inefficiency in the government budget in the form of transfers to urban and rural areas. This proves that the government's efforts in transfers to the regions have not been fully efficient in reducing income inequality in the area. The policy needed is to focus on capacity-building programs and human resources who will manage funds in the regions and act as a driving force for development.
Co-Authors Helmi Noviar Syahril Syahril Yunidar Purnama Sari