Factors Affecting Regional Expenditures In 10 Regencies And Cities In North Sumatra Province

Feb 28, 2025 by ADMIN 93 views

Factors Affecting Regional Expenditures in 10 Regencies and Cities in North Sumatra Province

Introduction

Regional expenditures play a crucial role in the development and well-being of communities in various regions. In North Sumatra Province, the regional expenditures of 10 regencies and cities are influenced by several factors, including regional original revenue (PAD), profit sharing funds (DBH), General Allocation Fund (DAU), and Special Allocation Fund (DAK). This study aims to identify the factors that influence regional spending in these regions, using a panel data regression model from 2017 to 2021.

Analysis of Factors Affecting Regional Expenditures

The results of this study show that PAD has a positive and significant influence on regional spending. This means that the higher the regional original income of a district or city, the greater the regional expenditure that can be allocated for community development and services. This is an important indicator that the area is able to manage financial resources effectively, so that it can invest in the programs needed by its citizens.

On the other hand, DBH shows a negative and significant effect on regional spending. This indicates that although profit sharing funds should support regional spending, in a certain context, the management or allocation of these funds may not be optimal. There may be other factors that influence, such as the strict provisions regarding their use, or even policies that do not support the use of these funds for programs that have a direct impact on the community.

DAU, which shows negative and insignificant influence on regional expenditure, provides additional information that the funds given from the central government are not always well received by the regions. This might indicate a problem in planning and implementing programs financed by DAU.

Meanwhile, DAK shows a positive but insignificant influence. This shows that although the special allocation fund can provide the potential to support regional spending, in practice the effect may not be felt directly. This can be caused by several factors, including a mismatch between regional needs and projects financed by DAK.

The Estimated Model

The estimated model obtained in this study shows the figure of 99,9455%, which indicates that this model is able to explain almost all variations of regional spending in the 10 districts and cities. This number reflects the strength of the data and analytical methods used.

Conclusion

Factors that influence regional spending in North Sumatra Province are very complex. This finding underlined the importance of managing good financial resources at the regional level in order to provide maximum benefits for the community. Success in managing PAD and optimizing the use of DBH and DAU needs to be the main focus for local governments.

With the results of this study, it is expected to contribute to better planning and budgeting in the future, and encourage appropriate decision making in the management of regional spending.

Recommendations for Future Research

This study provides a foundation for further research on regional spending in North Sumatra Province. Some potential areas for future research include:

Investigating the impact of regional spending on community development: This study could explore the relationship between regional spending and community development outcomes, such as poverty reduction, education, and healthcare.
Analyzing the effect of different funding sources on regional spending: This study could examine the impact of different funding sources, such as PAD, DBH, DAU, and DAK, on regional spending and community development outcomes.
Examining the role of local government in managing regional spending: This study could investigate the role of local government in managing regional spending, including the impact of local government policies and practices on regional spending and community development outcomes.

Additional Resources

For further research on regional spending, the following resources can be used as a reference:

Government Regulation of the Republic of Indonesia concerning Regional Financial Management: This regulation provides a framework for regional financial management in Indonesia.
Annual report from the Central Statistics Agency (BPS) regarding regional finances: This report provides data on regional finances, including regional spending and revenue.
Academic journals that discuss the management of regional expenditure and the effects of various funding sources: These journals provide a wealth of information on regional expenditure management and the impact of different funding sources on community development outcomes.

Limitations of the Study

This study has several limitations, including:

Data limitations: The data used in this study is limited to 2017-2021, which may not reflect the current situation in North Sumatra Province.
Methodological limitations: The panel data regression model used in this study may not capture all the complexities of regional spending in North Sumatra Province.
Theoretical limitations: This study assumes that regional spending is influenced by PAD, DBH, DAU, and DAK, but may not capture other factors that influence regional spending.

Future Directions

This study provides a foundation for further research on regional spending in North Sumatra Province. Future research could explore the impact of regional spending on community development, analyze the effect of different funding sources on regional spending, and examine the role of local government in managing regional spending.
Frequently Asked Questions (FAQs) about Factors Affecting Regional Expenditures in 10 Regencies and Cities in North Sumatra Province

Q: What is the main objective of this study? A: The main objective of this study is to identify the factors that influence regional spending in 10 regencies and cities in North Sumatra Province.

Q: What type of data was used in this study? A: The data used in this study is quantitative data, which is numerical data processed by statistical methods. Specifically, this study uses the type of data panel, which is a combination of time series data and data cross sections, from 2017 to 2021.

Q: What are the variables used in this study? A: The variables used in this study include regional expenditure (Y), Regional Original Revenue (PAD) (X1), profit sharing funds (DBH) (X2), General Allocation Fund (DAU) (X3), and Special Allocation Fund (DAK) (X4).

Q: What is the significance of PAD in regional spending? A: PAD has a positive and significant influence on regional spending. This means that the higher the regional original income of a district or city, the greater the regional expenditure that can be allocated for community development and services.

Q: What is the impact of DBH on regional spending? A: DBH shows a negative and significant effect on regional spending. This indicates that although profit sharing funds should support regional spending, in a certain context, the management or allocation of these funds may not be optimal.

Q: What is the role of DAU in regional spending? A: DAU shows negative and insignificant influence on regional expenditure. This might indicate a problem in planning and implementing programs financed by DAU.

Q: What is the impact of DAK on regional spending? A: DAK shows a positive but insignificant influence. This shows that although the special allocation fund can provide the potential to support regional spending, in practice the effect may not be felt directly.

Q: What is the estimated model obtained in this study? A: The estimated model obtained in this study shows the figure of 99,9455%, which indicates that this model is able to explain almost all variations of regional spending in the 10 districts and cities.

Q: What are the implications of this study? A: This study provides a foundation for further research on regional spending in North Sumatra Province. The findings of this study can contribute to better planning and budgeting in the future, and encourage appropriate decision making in the management of regional spending.

Q: What are the limitations of this study? A: This study has several limitations, including data limitations, methodological limitations, and theoretical limitations.

Q: What are the future directions of this study? A: This study provides a foundation for further research on regional spending in North Sumatra Province. Future research could explore the impact of regional spending on community development, analyze the effect of different funding sources on regional spending, and examine the role of local government in managing regional spending.

Q: What are the recommendations for future research? A: Some potential areas for future research include investigating the impact of regional spending on community development, analyzing the effect of different funding sources on regional spending, and examining the role of local government in managing regional spending.

Q: What are the additional resources that can be used as a reference for further research? A: The following resources can be used as a reference for further research:

Government Regulation of the Republic of Indonesia concerning Regional Financial Management
Annual report from the Central Statistics Agency (BPS) regarding regional finances
Academic journals that discuss the management of regional expenditure and the effects of various funding sources