Proceedings of the 11th International Applied Business and Engineering Conference, ABEC 2023, September 21st, 2023, Bengkalis, Riau, Indonesia

Research Article

Analysis of the Effectiveness of Regional Income And the Impact on Poverty Alleviation

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  • @INPROCEEDINGS{10.4108/eai.21-9-2023.2343010,
        author={Busra Busra and Yulianisah Yulianisah and Nanang Prihatin and Muhammad Nasir and Zamzami Zamzami and Diana Diana and Oelma Arfannur Azizi},
        title={Analysis of the Effectiveness of Regional Income And the Impact on Poverty Alleviation},
        proceedings={Proceedings of the 11th International Applied Business and Engineering Conference, ABEC 2023, September 21st, 2023, Bengkalis, Riau, Indonesia},
        publisher={EAI},
        proceedings_a={ABEC},
        year={2024},
        month={2},
        keywords={fiscal dependency ratio regional original income poverty},
        doi={10.4108/eai.21-9-2023.2343010}
    }
    
  • Busra Busra
    Yulianisah Yulianisah
    Nanang Prihatin
    Muhammad Nasir
    Zamzami Zamzami
    Diana Diana
    Oelma Arfannur Azizi
    Year: 2024
    Analysis of the Effectiveness of Regional Income And the Impact on Poverty Alleviation
    ABEC
    EAI
    DOI: 10.4108/eai.21-9-2023.2343010
Busra Busra1,*, Yulianisah Yulianisah1, Nanang Prihatin1, Muhammad Nasir1, Zamzami Zamzami1, Diana Diana1, Oelma Arfannur Azizi1
  • 1: Politeknik Negeri Lhokseumawe
*Contact email: busra@pnl.ac.id

Abstract

Delegation an authority from central government to local government is exists budget allocation For provision publics goods which has implications to increasing funding local government. In this study local original income is all income received other than transfers from the central government, that are local taxes, retribution, results from separated regional wealth management, other income and ZIS. Second, measuring the independence of the region, that is the level of dependence of the region on the center in terms of fiscal. Regional independence is meant by the ability of the region to finance its financial needs using regional original income, without having a high dependence on PDB. Third, estimating the impact on regional poverty reduction, which is approached by the human development index. By using an analysis of the effectiveness of the components of original income as well as regression analysis, its was found that the level of affectivity of regional original income was generally categorized as 'fairly effective', with an average effectiveness of 82 percent. To measure the level of regional government financial dependency was used dependency index and was found the value of 0.089, its in the “instructive” category, there are a central government is more dominant than regional original income. Meanwhile, using the regression test, it was found that locally-generated revenue had a significant impact on reducing poverty in Lhokseumawe.