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Abstract
This study aims to analyze the fiscal readiness of local governments in responding to national budget efficiency policies that demand an increase in fiscal independence. Many regions still exhibit high dependence on transfer funds and have narrow fiscal space due to the dominance of operational spending. Using an explanatory sequential mixed-methods approach, this study first maps the fiscal readiness of several local governments through an integrated framework of Financial Sustainability and Fiscal Resilience. Subsequently, in-depth case studies were conducted in high- and low-performing regions to explore the determining factors behind the performance differences. The quantitative results show a significant disparity among the regions. The qualitative findings reveal that fiscal independence in high-performing regions is driven by the strong political commitment of its leadership and strategic policy innovations. Conversely, the challenges in low-performing regions are rooted in the rigidity of large personnel expenditures and a limited economic base. This creates a paradox of "pseudo-efficiency" at the expense of capital spending for long-term development. This study recommends strategies for increasing local-source revenue based on political commitment and structural spending rationalization to increase local fiscal readiness.
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References
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- Moradi, T., Javad Kabir, M., Pourasghari, H., Ehsanzadeh, S. J., & Aryankhesal, A. (2023). Challenges of Budgeting and Public Financial Management in Iran’s Health System: A Qualitative Study. Medical Journal of The Islamic Republic of Iran. https://doi.org/10.47176/mjiri.37.80
- Pambudi, A. S. (2023). Evaluation of government funding support for national priority development related to the environmental sector in regions. Indonesian Journal of Applied Environmental Studies, 4(1). https://doi.org/10.33751/injast.v4i1.7283
- Ratnasari, D., & Meirini, D. (2023). Pendapatan Asli Derah, Daba Perimbangan, Belanja Modal, dan SILPA dalam Pengaruhnya Kinerja Keuangan. JURNAL AKUNTANSI, 17(1), 38–47. https://doi.org/10.37058/jak.v17i1.6737
- Sonjaya, Y. (2024). Exploring the Evolution of Budgeting Practices from Traditional to Technology. Advances in Management & Financial Reporting, 2(1), 36–45. https://doi.org/10.60079/amfr.v2i1.265
- Sugiarti, Zulfikar, & Triyono. (2024). Embracing the Beyond Budgeting Method to Enhance Performance in the Surakarta City Government. Atestasi : Jurnal Ilmiah Akuntansi, 7(2), 852–872. https://doi.org/10.57178/atestasi.v7i2.830
- Sulaeman, A. S., & Silvia, V. (2019). Pendapatan Asli Daerah, Transfer Daerah, dan Belanja Modal, Pengaruhnya Terhadap Pertumbuhan Ekonomi Regional di Indoenesia. Jurnal Aplikasi Akuntansi, 4(1), 97–112. https://doi.org/10.29303/jaa.v4i1.61
- Syahriyal, S., Abdullah, S., & Meutia, R. (2024). What Determines Financial Sustainability in Local Government? Evidence from Aceh Province, Indonesia. Riset Akuntansi Dan Keuangan Indonesia, 8(3), 261–274. https://doi.org/10.23917/reaksi.v8i3.3106
- Tovalini, K., Hanoselina, Y., & Yoserizal, Y. (2022). Analysis Of The Padang City APBD For The 2018 Fiscal Year: Involution Of Siding To The Public. Publica: Jurnal Pemikiran Administrasi Negara, 14(2), 135–144. https://doi.org/10.15575/jpan.v14i2.20821
- Wance, M. (2019). Dinamika Perencanaan Anggaran pada Anggaran Pendapatan Belanja Daerah (APBD) Buru Selatan.. The Indonesian Journal of Public Administration (IJPA), 5(1). https://doi.org/10.52447/ijpa.v5i1.1648
References
Akhadi, I. (2022). Pengaruh Penerimaan Pajak Terhadap Variabel Pendapatan Perkapita dan Angka Kemiskinan Sebagai Indikator Kemakmuran Rakyat. JURNAL PAJAK INDONESIA (Indonesian Tax Review), 6(1), 60–71. https://doi.org/10.31092/jpi.v6i1.1548
Fatriani, R. R., Maria, M., & Amri, D. (2023). Pengaruh Politik, Perencanaan Anggaran, dan Fiscal Stress terhadap Perubahan Anggaran. Kompeten: Jurnal Ilmiah Ekonomi Dan Bisnis, 2(2), 473–481. https://doi.org/10.57141/kompeten.v2i2.68
Herianti, E. (2019). Budget Turbulence and Budget Deviation: Do Local Govermnet Have the Ability to Reduce Them? Jurnal Tata Kelola Dan Akuntabilitas Keuangan Negara, 1–20. https://doi.org/10.28986/jtaken.v5i1.285
Ichsan, H., Mansur, A., & Novitasari, E. (2025). The Effect of Transfer Funds and Intellectual Capital on Local Government Financial Sustainability. Owner, 9(1), 326–336. https://doi.org/10.33395/owner.v9i1.2523
Moradi, T., Javad Kabir, M., Pourasghari, H., Ehsanzadeh, S. J., & Aryankhesal, A. (2023). Challenges of Budgeting and Public Financial Management in Iran’s Health System: A Qualitative Study. Medical Journal of The Islamic Republic of Iran. https://doi.org/10.47176/mjiri.37.80
Pambudi, A. S. (2023). Evaluation of government funding support for national priority development related to the environmental sector in regions. Indonesian Journal of Applied Environmental Studies, 4(1). https://doi.org/10.33751/injast.v4i1.7283
Ratnasari, D., & Meirini, D. (2023). Pendapatan Asli Derah, Daba Perimbangan, Belanja Modal, dan SILPA dalam Pengaruhnya Kinerja Keuangan. JURNAL AKUNTANSI, 17(1), 38–47. https://doi.org/10.37058/jak.v17i1.6737
Sonjaya, Y. (2024). Exploring the Evolution of Budgeting Practices from Traditional to Technology. Advances in Management & Financial Reporting, 2(1), 36–45. https://doi.org/10.60079/amfr.v2i1.265
Sugiarti, Zulfikar, & Triyono. (2024). Embracing the Beyond Budgeting Method to Enhance Performance in the Surakarta City Government. Atestasi : Jurnal Ilmiah Akuntansi, 7(2), 852–872. https://doi.org/10.57178/atestasi.v7i2.830
Sulaeman, A. S., & Silvia, V. (2019). Pendapatan Asli Daerah, Transfer Daerah, dan Belanja Modal, Pengaruhnya Terhadap Pertumbuhan Ekonomi Regional di Indoenesia. Jurnal Aplikasi Akuntansi, 4(1), 97–112. https://doi.org/10.29303/jaa.v4i1.61
Syahriyal, S., Abdullah, S., & Meutia, R. (2024). What Determines Financial Sustainability in Local Government? Evidence from Aceh Province, Indonesia. Riset Akuntansi Dan Keuangan Indonesia, 8(3), 261–274. https://doi.org/10.23917/reaksi.v8i3.3106
Tovalini, K., Hanoselina, Y., & Yoserizal, Y. (2022). Analysis Of The Padang City APBD For The 2018 Fiscal Year: Involution Of Siding To The Public. Publica: Jurnal Pemikiran Administrasi Negara, 14(2), 135–144. https://doi.org/10.15575/jpan.v14i2.20821
Wance, M. (2019). Dinamika Perencanaan Anggaran pada Anggaran Pendapatan Belanja Daerah (APBD) Buru Selatan.. The Indonesian Journal of Public Administration (IJPA), 5(1). https://doi.org/10.52447/ijpa.v5i1.1648