Determinant of fiscal distress in local government in Indonesia  

Oleh:

Indrayeni ; Raflis, Ratnawati

Jenis: Article from Proceeding
Dalam koleksi: Proceeding IConEnt 2016 (International Conference on Entrepreneurship) : How Innovation could Improve the Performance and Productivity in Entrepreneurship?, page 1-9.
Topik: fiscal distress; risk factors; and logistic regression.
Fulltext: Indrayeni, Ratnawati Raflis.pdf (284.75KB)

Isi artikel

This study aims to empirically examine the factors that affect fiscal distress in local government in Indonesia. Fiscal distress is defined as the presence of cumulative budget deficit over three consecutive years of more than five percent. The risk factors to determine the presence of fiscal distress in the local government in Indonesia consistof the concentration of income (TAXREV and IGR), administrative expenditure (ADM), and usage of loans (DEBTREV). This study uses the APBD 2009-2014. The analysis of data to examine the possibility of fiscal distress in the local government in Indonesia is a binary logistic regression. The results suggest that the TAXREV and DEBTREV have a relationship with the fiscal distress, while IGR and ADMIN have no relationship with the fiscal distress. The research finding is expected to provide feedback to local governments in Indonesia to avoid the possibility of fiscal distress, so that governments can wisely manage those resources to improve the welfare of the community.

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