Journal of Social and Humanities
Vol. 1 No. 2 (2023): April-September

How do Local Revenue, Revenue Sharing, General Allocation, and Special Allocation Funds impact Regional Spending in West Nusa Tenggara?

Lulu jumkhairatul (Universitas Mataram)
Hadi Mahmudi (Universitas Mataram)
Siti Sriningsih (Universitas Mataram)
Leonard K. Cheng (Hong Kong University of Science and Technology)
Alexander Kalb (BayernLB, Brienner Strasse 18)
Ermawati Ermawati (Institut Studi Islam Sunan Doe)



Article Info

Publish Date
24 Sep 2023

Abstract

Regional own-source revenue serves as a vital funding source for local government operations. The more revenue a region generates locally, the greater its capacity to meet regional expenditure requirements. Regional revenue and expenditure are also funded through the regional budget, which includes profit-sharing funds, general allocation funds, and special allocation funds. This study aims to analyze the impact of Regional Own-Source Revenue, Production Sharing Fund, General Allocation, and Special Allocation Fund on Regional Expenditures in West Nusa Tenggara Province during the 2017-2021 period. The research is quantitative-descriptive in nature, utilizing secondary data from the West Nusa Tenggara Province Regional Financial and Asset Management Agency (BPKAD). Data collection is conducted through documentation, and data analysis employs panel data regression with the EViews 10 analysis tool. The findings indicate that local own-source income, general allocation funds, and special allocation funds positively and significantly influence regional expenditures in West Nusa Tenggara Province. However, profit-sharing funds have a negative and significant impact on regional expenditures. The determinant test (R2) reveals an R-Squared value of 0.9888, indicating that 98.88% of the variation in regional spending in West Nusa Tenggara Province can be explained by the independent variables, while the remaining 2.22% is influenced by external factors not included in this study's model.

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Journal Info

Abbrev

JSH

Publisher

Subject

Religion Arts Humanities Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Law, Crime, Criminology & Criminal Justice

Description

Journal of Social and Humanities (JSH) is an international, peer-reviewed, open-access journal that aims to provide a platform for researchers, academicians, professionals, practitioners, and students to publish their research findings, ideas, and insights in a wide range of topics in social ...