Correlation of Regional Taxes and Regional Expenditures on Regional Fiscal Capacity Parigi Moutong District

Authors

  • Vera Sri Endah Cicilia Tadulako University, Palu
  • Rita Suirlan Tadulako University, Palu
  • Ika Rafika Tadulako University, Palu
  • Nuryana Haprin DJ Achmad Tadulako University, Palu

DOI:

https://doi.org/10.55927/ijbae.v3i4.9416

Keywords:

Regional Tax, Regional Expenditure, Fiscal Capacity

Abstract

This research aims to analyze the relationship between regional taxes and regional expenditure on the regional fiscal capacity of Parigi Moutong Regency 2016-2022. The research method uses a quantitative approach with a total of 7 years of observations obtained from the Regional Financial and Asset Management Agency Report of Parigi Moutong Regency and analyzed using simple linear correlation (least square method). The research results show that the regional tax variable is positively and significantly correlated with the regional fiscal capacity of Parigi Moutong Regency. The regional expenditure variable has a negative and insignificant correlation with the regional fiscal capacity of Parigi Moutong Regency. The results of this research illustrate the importance of optimizing regional taxes through intensification, extensification, and using the budget effectively and efficiently so as to create regional independence. The limitations of this research are that it does not cover all the dominant variables that support regional fiscal performance and still uses relatively small data.

Downloads

Download data is not yet available.

References

Adi, P. H, & Ekaristi, P. D. (2019). The Phenomenon of Fiscal Illusion in Regional Government Budget Performance. Indonesian Journal of Accounting and Finance Volume 6, Number 1, June 2009. Pages: 1-19. https://scholarhub.ui.ac.id/jaki/vol6/iss1/1/.

Anggara, S. (2016). State Financial Administration. CV. Faithful Library: Bandung.

Ariani, K. R., & Putri, G. A. (2016). The Influence of Capital Expenditures and General Allocation Funds on the Level of Regional Financial Independence (National Seminar and The 3rd Call for Sharia Paper. Page: 364-369. ISSN 2460-0784). https://publikasiilmiah.ums.ac.id/bitstream/handle/11617/7321/33- Kurnia Rina Ariani.pdf?sequence=1&isAllowed=y.

Azhar, Z. F, Rahmawati, D., & Gunaepi, A. (2023). The Influence of Regional Levies and Regional Taxes on Fiscal Capacity in Bogor Regency Viewed from an Islamic Economics Perspective. Journal of Student Development Informatics Management (JoSDIM). Volume 3, Number 2, October 2023, Pages: 173-184. e-ISSN: 2774-8219. https://jurnal.ulb.ac.id/index.php/JoSDIM/article/view/5061/3622.

Edame, G. E., & Okoi, W. W. (2014). The Impact of Taxation on Investment and Economic Development in Nigeria. Academic Journal of Interdisciplinary Studies MCSER Publishing, Volume 3, Number 4, July 2014, pp;209-218. E-ISSN 2281-4612. ISSN 2281-3993. https://www.richtmann.org/journal/index.php/ajis/article/view/3091.

Ernawati, & Riharjo, I. B. (2017). The Influence of the Performance of Regional Original Income and Capital Expenditures on Regional Financial Independence. Journal of Accounting Science and Research, Volume 6 (2), 531–545. ISSN: 2460-0585. http://jurnalmahasiswa.stiesia.ac.id/index.php/jira/article/view/806/820.

Febriayanti, F., & Faris, M. (2019). The Influence of Regional Taxes and Regional Levies on Regional Financial Independence in Regency/City Governments in East Java Province in 2015-2017. Civilization Accounting Scientific Journal, Vol. V No. December 2, 2019. Pages 162-175. ISSN: 2442-3017 (PRINT). ISSN: 2597-9116 (ONLINE). https://journal.uin-alauddin.ac.id/index.php/jiap/article/view/11799.

Fenochietto, R., & Pessino, C. (2013). Understanding Countries' Tax Effort (IMF Working Paper, WP/13/244. International Monetary Fund). https://www. imf.org//media/Websites/IMF/importedfulltextpdf/external/pubs/ft/wp/2013/wp13244.ashx.

Gropp, R., & Kostial, K. (2000). The Disappearing Tax Base: is Foreign Direct Investment Eroding Corporate Income Taxes? (IMF Working Paper, WP/00/173, 1-38.). https://ideas.repec.org/p/ecb/ecbwps/200031.html.

Halim, A., & Kusufi, M. S. (2014). Regional Financial Accounting. Edition 4. Salemba Empat: Jakarta.

Hamzah, M. Z., & Sofilda, E. (2022). Fiscal Decentralization: Present and Future. Phoenix Publisher: Yogyakarta.

Haque, A. A. K. M. (2010). Determinants of Low Tax Efforts of Developing Countries . Department of Business Law and Taxation Monash University. http://sydney.edu.au/law/parsons/ATTA/docs_pdfs/conference_papers/Haque_A.pdf.

Herdaleny, A. (2015). Analysis of Fiscal Capacity and Its Role in GRDP (Case Study of Districts/Cities in East Java [Jember University Thesis]. https://repository.unej.ac.id/handle/123456789/71317.

Law Number 1 of 2022 concerning Financial Relations Between the Central Government and Regional Governments.

Law Number 28 of 2009 concerning Regional Taxes and Regional Levies.

Law Number 33 of 2014 concerning Financial Balance between the Center and the Region.

Lisnawati, L. (2018). The Influence of Potential Regional Taxes on Original Regional Income (ORI) and Fiscal Capacity in Regencies/Cities in West Java. Journal of Business and Economic Accounting Volume 4 No. 2, September 2018. Page: 1249-1262. ISSN 2460-030X. https://journal.widyatama.ac.id/index.php/jabe/article/view/183/170.

Mardiasmo. (2011). Taxation, 2011 Revised Edition. CV. Andi Offset : Yogyakarta.

Minister of Finance Regulation Number 193/PMK.07/2022 concerning Regional Fiscal Capacity Maps, Regional Fiscal Capacity.

Nggilu, F., Sabijono, H., Tirayoh, V. F, Sam, U., & Manado, R. (2016). The Influence of Regional Taxes and Regional Retributions on Regional Financial Independence in Regency/City Governments in Gorontalo Province. Efficiency Scientific Periodical Journal, Volume 16 No. 4, 623–635. https://ejournal.unsrat.ac.id/v3/index.php/jbie/article/view/13700.

Novalistia, R. L. (2016). The Influence of Regional Taxes, Regional Levies, Other Legal Original Regional Income and Tax Profit Sharing on the Level of Regional Financial Independence in Regency or City Governments in Central Java Province (Empirical Study in Regency/Provincial Cities). Journal Of Accounting, Volume 2 No. 2, 1–13. https://jurnal.unpand.ac.id/index.php/AKS/article/view/449.

Novitasari, M., & Novitasari, L. (2019). The Influence of Taxes, Levies, DBH, Capital Expenditures, and Economic Growth on Regional Independence. Inventory: Journal of Accounting, Volume 3(2), 174–186. https://e-journal.unipma.ac.id/index.php/inventory/article/view/5244/2391.

Nurhidayati, L. L & Yaya, R. (2013). Capital Expenditure Allocation for Public Services: Practice in Regional Government. JAAI Volume 17 No. 2, DECEMBER 2013. 102-114. https://journal.uii.ac.id/JAAI/article/view/3774/3354.

Republic of Indonesia Financial Audit Agency. (2020). Audit Result Report on the 2019 Central Government Financial Report (pp. 1–60).

Rostina. (2014). The Influence of Capital Expenditures and Regional Investment on the Level of Financial Independence of Regencies/Cities throughout Sumatra. Thesis. Lampung University. Bandar Lampung. https://digilib.unila.ac.id/3395/.

Saraswati, N. P, & Nurharjanti, N. N (2021). The Influence of Regional Taxes, Regional Levies, Capital Expenditures and Balancing Funds on Regional Financial Independence. https://conference.upnvj.ac.id/index.php/biema/article/view/1680.

Sasana, H. (2011). Analysis of Determinants of Regional Expenditures in Regencies/Cities of West Java Province in the Era of Fiscal Autonomy and Decentralization. Journal of Business and Economics (JBE), Vol. 18, no. 1, March 2011, Pg. 46 – 58. ISSN: 1412-3126 . https://www.unisbank.ac.id/ojs/index.php/fe3/article/view/529/380.

Simatupang, F. F (2016). The Influence of Balancing Funds, Capital Expenditures and Employee Expenditures on the Level of Regional Independence in Regency/City Governments in North Sumatra Province. University of North Sumatra article. https://repository.usu.ac.id/handle/123456789/68387.

Sugiyono. (2009). Educational Research Methods Quantitative, Qualitative and R&D Approaches. CV. Alphabet: Bandung.

Sumantri, N. R, & Jannah, L. (2022). Analysis of the Effect of Regional Taxes, Regional Levies, Tax Profit Sharing Funds, Flypaper Effect on Fiscal Capacity in the Special Region of Yogyakarta Province. JURIMA JOURNAL Vol 2 No. 3 (December 2022) – E-ISSN: 2827-8577 P-ISSN: 2827-8569 pp. 40-50. https://ejurnal.politeknikpratama.ac.id/index.php/JURIMA.

Usman, H., & Akbar, P. S. (2006). Introduction to Statistics, Second Edition . PT. Earth of Letters: Yogyakarta.

Widyaningsih, A. T. (2018). The Influence of Regional Taxes, Regional Levies and Gross Regional Domestic Product on the Fiscal Capacity of Pontianak City. Journal of Business Economics and Entrepreneurship (JEBIK) 2018, Vol.7, No.3, 215-237. P-ISSN : 2087 – 9954, E-ISSN : 2550 – 0066. doi:http://dx.doi.org/10.26418/jebik.v7i3.25893.

Downloads

Published

2024-07-26

How to Cite

Cicilia, V. S. E. ., Suirlan, R. ., Rafika, I. ., & Achmad, N. H. D. . (2024). Correlation of Regional Taxes and Regional Expenditures on Regional Fiscal Capacity Parigi Moutong District. International Journal of Business and Applied Economics, 3(4), 673–688. https://doi.org/10.55927/ijbae.v3i4.9416

Issue

Vol. 3 No. 4 (2024): July 2024

Section

Articles

License

Copyright (c) 2024 Vera Sri Endah Cicilia, Rita Suirlan, Ika Rafika, Nuryana Haprin DJ Achmad

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.