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Analysis of Local Expenditure Determinants in Districts/ Cities in the East Java Province

Author

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  • Hapsari Nur Aziza

    (Universitas Pembangunan Nasional Veteran Jakarta, Indonesia)

  • Mahendro Sumardjo

    (Universitas Pembangunan Nasional Veteran Jakarta, Indonesia)

Abstract

This study aims to test the effect of Local Own-Source Revenue, General Allocation Fund, Special Allocation Fund, and Population Amount towards Local Expenditure. This study used all 39 districts/cities in the East Java Province as samples. The sample collection method used in this study is the saturated sample method. This study uses secondary data from the Budget Realization Report and population. The analysis method used is the double linear regression method using SPSS with a significance rate of 5% (0.05). The result of this study shows that Local Own-Source Revenue, General Allocation Fund, and Population Amount has a significant effect towards Local Expenditure. Meanwhile the Special Allocation Fund partially does not have a significant effect towards Local Expenditure. This contribution for the Local Government of the East Java Province is hoped to be able to provide information to the people regarding the importance of paying taxes, since the payment of taxes will increase the region’s Local Own-Source Revenue, and in turn promote the people’s welfare

Suggested Citation

  • Hapsari Nur Aziza & Mahendro Sumardjo, 2020. "Analysis of Local Expenditure Determinants in Districts/ Cities in the East Java Province," European Journal of Business and Management Research, European Open Science, vol. 5(4), July.
    • Handle: RePEc:epw:ejbmr0:v:5:y:2020:i:4:id:50439
    DOI: 10.24018/ejbmr.2020.5.4.439
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