Regional Investment, Capital Expenditure, General Transfer Funds, Economic Growth Rate, And Regional Original Income All Have An Impact On The Degree Of Regional Fiscal Independence

Abstract

The purpose of this study is to identify whether there is an influence on economic growth, LGR, DTU, regional investment and capital expenditures on the degree of regional financial independence in the Regency/City of Central Java Province in the 2017-2021 period. This research study is descriptive quantitative. The data collection technique is document review and literature review with saturated sampling technique. The data for this research study is secondary data which includes the constant price GRDP Report and the Financial Statistics of the Regency/City Government of Central Java province for 5 years (2017-2021) sourced from Central Java BPS. The analysis tool is SPSS 22.0. The results of this study reveal that economic growth and regional investment do not affect regional fiscal independence. Meanwhile, LGR and capital expenditure have positive and significant coefficients for regional fiscal independence. And DTU has a negative and significant coefficient for regional fiscal independence.