The Effect of Financial Independence, Spending Efficiency, and Local Government Size on Fiscal Incentive Funds in Provincial Governments in Indonesia

Trio Anggara; Yuli Antina Aryani; Desri Yanto

doi:10.31851/jmwe.v23i3.22269

Authors

Trio Anggara Sriwijaya State Polytechnic
Yuli Antina Aryani Sriwijaya State Polytechnic
Desri Yanto Sriwijaya State Polytechnic

DOI:

https://doi.org/10.31851/jmwe.v23i3.22269

Abstract

This study aims to determine the effect of Financial Independence, Expenditure Efficiency, and Local Government Size on Fiscal Incentive Funds, both partially and simultaneously, in Provincial Governments in Indonesia during the 2020–2024 period. The data used in this study are secondary data, obtained from the Provincial Government Financial Reports (LKPD) of all provinces in Indonesia for the 2020–2024 period, published on the official website of the Audit Board of the Republic of Indonesia (BPK RI). The population in this study consists of 38 provinces in Indonesia, with samples selected using a purposive sampling technique. Hypothesis testing in this study was conducted through multiple linear regression analysis, using IBM SPSS Version 26 as the data processing tool. The results show that Financial Independence has a positive and significant effect on Fiscal Incentive Funds, while Expenditure Efficiency and Local Government Size have a negative and significant effect on Fiscal Incentive Funds.

Keywords:

Financial Independence, Spending Efficiency, Local Government Size, Fiscal Incentive Funds

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