Saudi Journal of Economics and Finance (SJEF)
Volume-4 | Issue-04 | 133-144
Original Research Article
Government Budget Deficit in the Regency/City Jambi Province through a Micro Approach
Junaidi, Syamsurijal Tan, Junaidi, Arman Delis
Published : April 11, 2020
Abstract
The budget deficit illustrates the sub-optimal revenue of a region. When viewed from a micro approach related to the lack of services to the community it also becomes very important in development planning and strategies set by the government in achieving development goals. The objectives of this study are 1). How is the development of the district / city-regional government budget deficit in Jambi Province in the 2000-2016 fiscal year, 2). How is the degree of fiscal decentralization and the financial dependence of districts/cities in Jambi Province, 3). What factors affect the budget deficit of Regency /City Governments in Jambi Province from the micro side. The source of data used in this study uses secondary data and primary data. The number of respondents using the calculation analysis obtained 140 respondents from 5 districts/cities in Jambi Province. Based on the analysis results obtained that: 1) The highest budget deficit in the West Tanjung Jabung Regency Government during the analysis period when compared with other regencies/cities in Jambi Province, namely in the amount of Rp. 338,586 million occurred in 2013, while the lowest budget deficit occurred in 2012 of Rp. Rp. 60,000 Million, 2) the degree of fiscal decentralization in Jambi Province in 2002-2006, the percentage of PAD to TPD experienced a significant increase. But in 2007 the percentage of PAD to TPD again declined by 37.83 percent. While the regional independence ratio for 1998-2017 was 63.57 percent and in the category of medium capability, 3). Based on the results of the regression analysis it was found that political and corruption variables had a negative and significant effect on the budget deficit, while for the human resource variable a positive and significant effect against budget deficits.