Proceedings of the 2nd Borobudur International Symposium on Humanities and Social Sciences, BIS-HSS 2020, 18 November 2020, Magelang, Central Java, Indonesia

Research Article

The Effect of Local Revenue on Local Expenditures in East Kalimantan Province, Indonesia

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  • @INPROCEEDINGS{10.4108/eai.18-11-2020.2311671,
        author={La Ode  Hasiara and Amiril  Azizah},
        title={The Effect of Local Revenue on Local Expenditures in East Kalimantan Province, Indonesia},
        proceedings={Proceedings of the 2nd Borobudur International Symposium on Humanities and Social Sciences, BIS-HSS 2020, 18 November 2020, Magelang, Central Java, Indonesia},
        publisher={EAI},
        proceedings_a={BIS-HSS},
        year={2021},
        month={9},
        keywords={local revenue general allocation fund special allocation fund profit sharing fund local expenditure},
        doi={10.4108/eai.18-11-2020.2311671}
    }
    
  • La Ode Hasiara
    Amiril Azizah
    Year: 2021
    The Effect of Local Revenue on Local Expenditures in East Kalimantan Province, Indonesia
    BIS-HSS
    EAI
    DOI: 10.4108/eai.18-11-2020.2311671
La Ode Hasiara1,*, Amiril Azizah2
  • 1: Department of Accounting, Samarinda State Polytechnic, Indonesia
  • 2: Department of Marketing Management, Samarinda State Polytechnic, Indonesia
*Contact email: hasiara@polnes.ac.id

Abstract

This research aim is to know, test, and analyzing the effect of local revenue and matching grant (general allocation fund, special allocation fund, and profit-sharing fund) on local expenditure at districts/cities in East Kalimantan province. This research uses quantitative methods with documentary data from the realization of district/city APBD in East Kalimantan Province. The analytical tool is the Multiple Linear Regression. The study results show that local revenue has a positive and significant effect on local expenditure, general allocation fund has a positive and significant effect on local expenditure, special allocation fund does not affect local expenditure, and revenue sharing fund has a positive and significant effect on local expenditure. Local Revenue, General Allocation Fund, Special Allocation Fund, and Profit-Sharing Fund simultaneously have a positive and significant effect on Local expenditure at Districts / Cities in East Kalimantan Province for 2014-2018 period. The result indicates that R2 is 0.905 or 90.5%. It means the effect of local revenue, general allocation funds, special allocation funds and profit-sharing funds on local expenditure is 90.5%, while the remaining 9.5% is affected by other variables outside this study.