Fiscal Health in Local Government Based on Soft System
(1) Students of Doctoral Program in Faculty of Administrative Science, Universitas Brawijaya
(2) Lecture at Department of Public Administration, Faculty of Administrative Science, Universitas Brawijaya
(3) Lecture at Department of Public Administration, Faculty of Administrative Science, Universitas Brawijaya
(4) Lecture at Department of Public Administration, Faculty of Administrative Science, Universitas Brawijaya
Abstract
The purpose of this paper is to identify problems and construct a conceptual model related to the local fiscal health condition. The local fiscal health condition is highly dependent on many factors, indicating that local finance is a complex, systemic and unstructured process. The main emphasis in this research is that the researchers attempt to explore the problem situation with the interpretive and naturalistic approach toward the local fiscal health condition and to study, understand, and interpret the meaning of phenomenon. This study uses a soft system methodology (SSM) that is a systemic approach to describe unstructured issues with a structured approach. The successful conceptual model constructed in this research is the survival mechanism of revenues and expenditures model. The results of this study indicate that the main problem of fiscal health condition is from both revenues and expenditures. Revenues problem is indicated by the low local fiscal independence, while expenditures problem is by the high indirect personnel expenditures. The location taken as the unit of analysis was Bondowoso Regency, East Java, Indonesia with the consideration that Bondowoso Regency is one of the four underdeveloped regencies in East Java Province.
Keywords
Full Text:
PDFReferences
(INDEF), I. f. D. o. E. a. F. (2016). Mid-Year Study INDEF 2016: Package Evaluation, Economic Evaluation. Jakarta: INDEF.
Amalia, F. R., & Purbadharmaja, I. B. P. (2014). Influence of Regional Financial Independence And the Harmony of Allocation of Expenditure to the Human Development Index. E-Journal of Development Economics Universitas Udayana, 3(6).
Anita, F. T. (2013). Influence of Regional Financial Independence Levels to the Performance of District and City Regional Governments in West Sumatra Province. Universitas Andalas.
Bank, W. (2011). Analysis of Relationship between Balancing Fund and Performance of Basic Public Services in Indonesia. Retrieved from
Behera, D. K., & Dash, U. (2017). Effects of economic growth towards government health financing of Indian states: an assessment from a fiscal space perspective. Journal of Asian Public Policy, 1-22.
Brown, K. W. (1993). The 10-point test of financial condition: Toward an easy-to-use assessment tool for smaller cities. Government Finance Review, 9, 21-21.
Checkland, P. (2000). Soft systems methodology: a thirty year retrospective. Systems research and behavioral science, 17(S1), S11-S58.
Checkland, P., Scholes, J., & Checkland, P. (1990). Soft systems methodology in action (Vol. 7): Wiley Chichester.
Chen, Y., Liu, D., Wu, J., & Sun, L. (2012). A local fiscal health index model based on extended matter-element evaluation. AASRI Procedia, 1, 394-399.
Creswell, J. W. (2010). Research design qualitative, quantitative and mixed approaches. Yogyakarta: Pustaka Pelajar.
Denzian, N. K., Yvona S Lincollin. (2009). Handbook of Qualitative Research. Jakarta: Pustaka Pelajar
Elhiraika, A. B. (2007). Fiscal decentralization and public service delivery in South Africa. Canada Fund for Africa.
Fiva, J. H. (2006). New evidence on the effect of fiscal decentralization on the size and composition of government spending. FinanzArchiv: Public Finance Analysis, 62(2), 250-280.
Fjeldstad, O.-H., & Heggstad, K. (2012). Local government revenue mobilisation in Anglophone Africa.
Gianakis, G. A., & McCue, C. P. (1999). Local government budgeting: A managerial approach: Greenwood publishing group.
Gideon, Z., & Alouis, C. (2013). The Challenges of Self-Financing in Local Authorities The Case of Zimbabwe.
Gorina, E. (2013). Fiscal sustainability of local governments: Effects of government structure, revenue diversity, and local economic base. Arizona State University.
Harjowiryono, M. (2012). Development of Intergovernmental Financing Systems in Indonesia. Fiscal Decentralization in Indonesia a Decade after the Big Bang.
Honadle, B. W., Cigler, B., & Costa, J. M. (2003). Fiscal health for local governments: Elsevier.
Huang, C.-J., & Ho, Y.-H. (2013). Analyzing the fiscal health of local governments in Taiwan: Evidence from quantile analysis. Paper presented at the Proceedings of World Academy of Science, Engineering and Technology.
Ma, J. (2002). Monitoring Fiscal Risks of Subna-tional'Governments: Selected Country Expe-riences. Ethe WORLD BANK, 393.
Maani, K. E., & Cavana, R. Y. (2000). Systems thinking and modelling: Understanding change and complexity: Prentice hall.
McDonald III, B. (2017). Measuring the fiscal health of municipalities. Retrieved from
Nurhayati, M. (2015). Influence of Regional Independence, Government Investment, Labor Force and Per capita Income on Regional Economic Growth in 33 Provinces in 2008-2013. Scientific Journal of Management and Mercu Buana Business, 1(3).
Raju, S. (2011). Analyzing the Fiscal Health of State Governments in I ndia: Evidence from the 14 Major States. Public Budgeting & Finance, 31(3), 49-72.
RI, K. K. (2014). Description and Analysis Regional Revenue and Expenditure Budget 2014 Retrieved from www.kemenkeu.go.id
Schroeder, L. (2007). Forecasting local revenues and expenditures. Local budgeting, 53-78.
Sholikhah, R. (2011). Analysis of Regional Financial Independence Ability and Its Effect on the Economic Growth of Wonogiri Regency in the Fiscal Year 2000-2009. Universitas Sebelas Maret.
Suci, S. C. (2013). Effect of Regional Financial Independence on Economic Growth and Poverty in Regency / City of Banten Province.
Supriyono, B. (2007). Development of Local Government Institutions in Urban Infrastructure Provision in Malang City. Disertation. Depok: FISIP UI.
Ugoh, S. C., & Ukpere, W. I. (2009). Problems and prospects of budgeting and budget implemen-tation in Local Government System in Nigeria. African Journal of Business Management, 3(12), 836-846.
Valeta, L., & Walton, G. (2008). Integrated develop-ment planning and budgeting at local government. Journal of Public Administration, 43(Special issue 1), 373-384.
Vogt, A. J. (2007). Local Capital Budgeting. In A. Shah (Ed.), Local budgeting: World Bank.
Refbacks
- There are currently no refbacks.
This work is licensed under a Creative Commons Attribution 4.0 International License.