The Affecting Factors of Government General Fund Allocation in North Sumatera

International Journal of Economics and Management Studies
© 2017 by SSRG - IJEMS Journal
Volume 4 Issue 1
Year of Publication : 2017
Authors : Oktarini Khamilah Siregar
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Oktarini Khamilah Siregar, "The Affecting Factors of Government General Fund Allocation in North Sumatera," SSRG International Journal of Economics and Management Studies, vol. 4,  no. 1, pp. 17-23, 2017. Crossref, https://doi.org/10.14445/23939125/IJEMS-V4I1P103

Abstract:

The purpose of this study was conducted to obtain empirical evidence and analyze the Population Index (PI), Area Index (AI), Human Development Index (HDI), Construction Cost Index (CCI), Index of Gross Regional Domestic Product per capita at current price (IGRDP per capita at current prices), Original Local Revenue (OLR), Profit Sharing Fund (PSF) Taxes and Natural Resources as a factor influencing the amount of the General Allocation Fund (GAF). This study analyzed 33 local districts and cities in North Sumatra. The chosen area will be included as members of 25 local government districts. The observation is conducted over three years from 2006 to 2008. There are 75 units of observations. The quantitative data used in this study was obtained from the local government financial statistics report. Hypothesis testing was done by multiple regression analysis after the classical assumption of sample data. Research results show that the Population Index (PI), Area Index (AI), Human Development Index (HDI), Construction Cost Index (CCI), Index of Gross Regional Domestic Product, Original Local Revenue (OLR), Profit Sharing Fund (PSF) and Natural Resources simultaneously influence the amount of the General Allocation Fund (GAF). Partially while the Population Index, Index Area, regional real income, the Tax Sharing Fund and Natural Resources is the positive effect on the amount of the General Allocation Fund Index. The Gross Domestic Product per capita at current prices has the negative influence on the amount of Fund Allocations General. However, the Human Development Index and Construction Cost Index did not affect the amount of the General Allocation Fund.

Keywords:

Fiscal Need, Fiscal Capacity, General Allocation Fund.

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