The Effect of Regional Revenue Diversification,Fiscal Decentralization, and Balance Funds on Fiscal Stress in Districts/Cities in South Sumatra Province
DOI:
https://doi.org/10.31851/jmwe.v23i3.22368Abstract
Fiscal Stress is a condition of fiscal stress that consists of when regional financial capabilities are unable to keep up with regional spending needs. This study aims to empirically examine the impact of Regional Revenue Diversification, Fiscal Decentralization, and Balance Funds on Fiscal Stress in Regencies/Cities in South Sumatra Province in 2020-2024. The quantitative method was applied using secondary data from the Budget Realization Report (LRA) from the Directorate General of Financial Balance (DJPK). The research sample used a saturated sampling technique with a total of 85 data from 17 districts/cities and the data was analyzed using panel data regression (Eviews 13). Based on statistical analysis, Regional Revenue Diversification has a negative and significant effect on Fiscal Stress, while Fiscal Decentralization and Balance Funds partially do not have a significant effect. At the same time, these three variables have a significant effect on Fiscal Stress through the achievement of Adjusted R-Squared of 0.1229.
Keywords:
Regional Revenue Diversification, Fiscal Decentralization, Balance Fund, Fiscal stress.
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