ANALYSIS OF FACTORS AFFECTING REGIONAL TAX REVENUES THROUGHOUT INDONESIA 2023
DOI:
https://doi.org/10.65886/ijde.v1i4.45Keywords:
Regional Tax Revenue, GDP, FDI, Regional ExpenditureAbstract
This study aims to analyze the influence of Gross Regional Domestic Product (GDP), Foreign Investment (FDI), Regional Original Revenue (ROR), and Regional Expenditure on regional tax revenues in all provinces in Indonesia in 2023. The still glaring inequality in tax revenue between provinces is the main background of this study, which encourages the need for a comprehensive understanding of fiscal determinants at the regional level. This study uses a quantitative approach with multiple linear regression methods and secondary data from 38 provinces. The results of the study show that simultaneously the four variables have a significant effect on regional tax revenue. However, partially, only ROR has a positive and significant effect, while regional spending has a negative and significant effect. In contrast, GDP and FDI did not show a statistically significant influence. The research model has high predictive power with an Adjusted R² value of 98.4%, which indicates that almost all variations in regional tax revenues can be explained by the variables in the model. These findings emphasize the importance of optimizing ROR and improving regional spending efficiency as the main strategy in strengthening regional fiscal capacity. The implications of this study highlight the need for a more adaptive fiscal policy reformulation to the economic characteristics of each region. The novelty of this study lies in a comprehensive and comprehensive approach to the four main variables nationally using the latest data for 2023, which has not been widely studied in previous studies, and emphasizing the interaction between internal factors (ROR and expenditure) and external factors (GDP and FDI) in explaining fiscal inequality between regions.
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