Determinasi Financial Sustainability pada Pemerintah Daerah: Pendekatan Keuangan Publik
DOI:
https://doi.org/10.47065/arbitrase.v6i3.3133Keywords:
Financial Sustainability; Financial Dependence; Regional Independence; Capital Expenditure; Local GovernmentsAbstract
The urgency of this research stems from the COVID-19 pandemic, which has left several problems, one of which is affecting the national economy. The collapse of the national economy has had a direct impact on the economies of local governments. Local governments, which have the authority to carry out their own obligations, are also obligated to provide optimal services to their communities. However, what is currently happening is that the revenue received by local governments does not match the amount of regional expenditures they must incur. Therefore, fiscal sustainability is a crucial factor that must be continuously strengthened to achieve national goals. The purpose of this research is to analyze and seek empirical evidence regarding the factors that can determine financial sustainability from a public finance perspective. This study uses a quantitative method by taking financial report data from companies in regencies/cities throughout Java for 2020-2022 with data processing using SPSS 26. This study found that the matching ratio, DAK, capital expenditure, and regional government size influence financial sustainability. Meanwhile, financial dependence and regional independence do not significantly impact financial sustainability. The scope of this research is limited to the island of Java between 2020 and 2022, so this study may not fully reflect the financial sustainability of regional governments, which have different economic characteristics, fiscal capacities, and revenue structures. This study uses secondary data, which may not be able to comprehensively capture qualitative aspects such as regional fiscal policies, institutional capacity, and financial management strategies of each regional government. This research adds to the empirical literature on financial sustainability in local governments. It also offers practical implications for local governments in strengthening their financial sustainability efforts, enabling them to optimize their spending structure and utilize transfers from the central government more effectively.
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Copyright (c) 2026 Annisa Fitriana Kusumawati, Susilaningdyah Mustikawati, Putri Linggasari Sofi, Rafi Amani Muflih Rahardi, Aditya Saputra, Pipit Febrianasyah Putri, Arisna Yuliana Putri
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