Government Revenue and Spending Nexus in Regional Indonesia: Causality Approach

• Autorzy: Ratu, Eva Febriani , Roosemarina Anggraini Rambe
• Języki publikacji: EN

Abstrakty

EN

This study aims to test the hypothesis that explains the relationship between tax revenue and government spending in six Indonesian regions. Furthermore, the units of analysis were districts and cities in each region from 2006 to 2017, and a Granger panel causality approach was used. The results showed five experienced bidirectional causalities between tax revenues and local government spending out of the six regions, namely Java, Sumatra, Kalimantan, Sulawesi, and the Bali & Nusa Tenggara. Also, there was fiscal synchronisation in five regions, while the tax-spend hypothesis applies in the Papua & Maluku regions. Therefore, the local governments in these regions need to be careful in deciding actions related to increasing revenue. This can be achieved through the tax sector's optimisation and expenditure increment by encouraging public spending from the administration. (original abstract)

Słowa kluczowe

EN

Public finance; Tax system; Budget revenue; Government spending; Granger casuality

PL

Finanse publiczne; System podatkowy; Dochody budżetowe; Wydatki państwa; Przyczynowość w sensie Grangera

• Czasopismo: Economics, Management and Sustainability
• Rocznik: 2022
• Tom: 7
• Numer: nr 1
• Strony: 34--42

Twórcy

autor

Ratu, Eva Febriani

• University of Bengkulu, Indonesia

autor

Roosemarina Anggraini Rambe

• University of Bengkulu, Indonesia

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Identyfikatory

DOI

10.14254/jsdtl.2022.7-1.3