Journal of Social Research
Vol. 2 No. 4 (2023): Journal of Social Research

Determinants of Fiscal Stress on Local Government Finances in East Java

Sofia Septi Suryani (Faculty of Economics and Business, Universitas Airlangga)
Windijarto Windijarto (Faculty of Economics and Business, Universitas Airlangga)



Article Info

Publish Date
15 Mar 2023

Abstract

The growing demands for public services have an impact on the availability of funds to meet these demands. This condition caused budgetary pressure on the government which was later called fiscal stress. This study aims to determine the factors that cause fiscal stress as seen from the financial statements of local governments in East Java. The analysis method used in this study is the Data Regression Panel, which is a combination of cross-section and time series data. The population and samples used are regencies/cities in East Java. This research resulted in the discovery that Regional Original Income (PAD), Equalization Fund (DP), Employee Expenditure (BP), Goods and Services Expenditure (BBJ), and Surplus/Deficit (PM) had a significant effect on Fiscal Stress. This result can be used as a consideration for the regency/city government in East Java to carry out good management of the performance activities of the District/city government by taking into account internal factors, namely Regional Original Income, Balance Fund, Expenditure, surplus/deficit, and budget absorption so that the regency/city government can avoid fiscal stress.

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Journal Info

Abbrev

ijsr

Publisher

Subject

Humanities Computer Science & IT Economics, Econometrics & Finance Education Social Sciences

Description

The Journal of Social Research is a double blind peer-reviewed academic journal and open access to social and scientific fields. The journal is published monthly by International Journal Labs. The Journal of Social Research provides a means for sustained discussion of relevant issues that fall ...