Improved management of regional levies

Oct 13, 2025 by leolavanderia.com.br 45 views

Effects of Regional Levies, Profit Sharing Funds, Remaining Budget Financing, and Regional Business Profit on Opportunistic Behavior of Budget Compilers (Case Study of the District/City of East Java Province 2011-2015)

Introduction

The management of public finances is a critical aspect of governance, and the behavior of budget compilers plays a significant role in determining the quality of public finance management. Opportunistic behavior, which refers to actions that prioritize personal interests or certain groups over the interests of the wider community, can have far-reaching consequences on the effectiveness of public financial management. This study aims to analyze the effect of regional levies, profit sharing funds, remaining budget financing, and regional business profit on the opportunistic behavior of budget compilers in the Regional Government of East Java Province from 2011 to 2015.

Methodology

This study uses secondary quantitative data with a purposive sampling approach, where the sample consists of 15 districts/cities out of a total of 38 districts/cities in East Java. Hypothesis testing is carried out using SPSS 21 software with multiple regression analysis methods and residual analysis.

Results

The results of this study show that regional business profits do not have a significant effect on opportunistic behavior in the preparation of the budget. Conversely, regional levies, profit sharing funds, and the remaining budget financing have been proven to have a significant influence on the opportunistic behavior. In addition, overall (simultaneously), there is a significant influence between independent variables and dependent variables.

Effect of Regional Levies

Regional levies are one of the sources of local revenue obtained through taxes or other levies. The results of this study show that regional levies had a significant influence on opportunistic behavior. This may be caused by the existence of incentives for budget compilers to maximize regional income in the interests of political or personal.

Regional levies can provide a significant source of revenue for local governments, but they can also create opportunities for opportunistic behavior. Budget compilers may prioritize the collection of regional levies over other sources of revenue, which can lead to decisions that favor certain groups or individuals over others. This can have negative consequences on the quality of public finance management and the overall well-being of the community.

Revenue Sharing Funds

The profit sharing funds, which come from national income and distributed to the regions, have a positive impact on the behavior of the budget compiler. This may be caused by the desire to improve performance and maintain reputation in the eyes of the community. When the region receives these funds, there is an encouragement to use these funds in a transparent and accountable way.

Revenue sharing funds can provide a significant source of revenue for local governments, but they can also create opportunities for opportunistic behavior. Budget compilers may prioritize the use of revenue sharing funds over other sources of revenue, which can lead to decisions that favor certain groups or individuals over others. This can have negative consequences on the quality of public finance management and the overall well-being of the community.

The Remaining Budget Financing

The remaining budget financing (SILPA) is a surplus of the previous year's budget that can be used for financing the following year. This study found that Silpa also had a significant influence on opportunistic behavior. This can explain that the existence of a budget surplus provides freedom for the budget compiler to intervene in budgeting, which in turn can lead to decisions that do not always side with the public interest.

The remaining budget financing can provide a significant source of revenue for local governments, but it can also create opportunities for opportunistic behavior. Budget compilers may prioritize the use of remaining budget financing over other sources of revenue, which can lead to decisions that favor certain groups or individuals over others. This can have negative consequences on the quality of public finance management and the overall well-being of the community.

Regional Business Profit

Although regional business profits do not have a significant influence on opportunistic behavior, this remains an important point to consider. This shows that even though the profit generated from regional businesses can be a source of income, its management must still be transparent and accountable so as not to cause potential misuse of authority.

Regional business profits can provide a significant source of revenue for local governments, but they can also create opportunities for opportunistic behavior. Budget compilers may prioritize the management of regional business profits over other sources of revenue, which can lead to decisions that favor certain groups or individuals over others. This can have negative consequences on the quality of public finance management and the overall well-being of the community.

Conclusion

This study provides an important insight into how various financial factors can affect the behavior of the budget compiler. The results of this study show that regional levies, profit sharing funds, and the remaining budget financing have a significant influence on opportunistic behavior, while regional business profits do not have a significant effect. This highlights the importance of transparent and accountable management of public finances, as well as the need for policy makers to take appropriate steps to ensure better and sustainable public financial management.

Recommendations

Based on the findings of this study, the following recommendations are made:

Improved management of regional levies: Regional levies should be managed in a transparent and accountable way to prevent opportunistic behavior.
Increased transparency in revenue sharing funds: Revenue sharing funds should be used in a transparent and accountable way to prevent opportunistic behavior.
Better management of remaining budget financing: Remaining budget financing should be managed in a transparent and accountable way to prevent opportunistic behavior.
Improved management of regional business profits: Regional business profits should be managed in a transparent and accountable way to prevent opportunistic behavior.
Strengthening of internal control systems: Internal control systems should be strengthened to prevent opportunistic behavior and ensure that public finances are managed in a transparent and accountable way.

By implementing these recommendations, policy makers can help to prevent opportunistic behavior and ensure that public finances are managed in a transparent and accountable way. This can lead to better and sustainable public financial management, which is essential for the overall well-being of the community.
Frequently Asked Questions (FAQs) on the Effects of Regional Levies, Profit Sharing Funds, Remaining Budget Financing, and Regional Business Profit on Opportunistic Behavior of Budget Compilers

Q: What is opportunistic behavior in the context of budget compilers?

A: Opportunistic behavior refers to actions that prioritize personal interests or certain groups over the interests of the wider community. In the context of budget compilers, opportunistic behavior can manifest in decisions that favor certain groups or individuals over others, leading to unfair distribution of resources and potential misuse of authority.

Q: What are regional levies, and how do they affect opportunistic behavior?

A: Regional levies are one of the sources of local revenue obtained through taxes or other levies. The results of this study show that regional levies have a significant influence on opportunistic behavior. This may be caused by the existence of incentives for budget compilers to maximize regional income in the interests of political or personal.

Q: What are profit sharing funds, and how do they affect opportunistic behavior?

A: Profit sharing funds are funds that come from national income and are distributed to the regions. The results of this study show that profit sharing funds have a positive impact on the behavior of the budget compiler. This may be caused by the desire to improve performance and maintain reputation in the eyes of the community.

Q: What is remaining budget financing, and how does it affect opportunistic behavior?

A: Remaining budget financing (SILPA) is a surplus of the previous year's budget that can be used for financing the following year. The results of this study show that SILPA also has a significant influence on opportunistic behavior. This can explain that the existence of a budget surplus provides freedom for the budget compiler to intervene in budgeting, which in turn can lead to decisions that do not always side with the public interest.

Q: What is regional business profit, and how does it affect opportunistic behavior?

A: Regional business profit refers to the profit generated from regional businesses. Although regional business profits do not have a significant influence on opportunistic behavior, this remains an important point to consider. This shows that even though the profit generated from regional businesses can be a source of income, its management must still be transparent and accountable so as not to cause potential misuse of authority.

Q: What are the implications of this study for policy makers?

A: The results of this study have significant implications for policy makers. They highlight the importance of transparent and accountable management of public finances, as well as the need for policy makers to take appropriate steps to ensure better and sustainable public financial management.

Q: What are the recommendations of this study for policy makers?

A: Based on the findings of this study, the following recommendations are made:

Improved management of regional levies: Regional levies should be managed in a transparent and accountable way to prevent opportunistic behavior.
Increased transparency in revenue sharing funds: Revenue sharing funds should be used in a transparent and accountable way to prevent opportunistic behavior.
Better management of remaining budget financing: Remaining budget financing should be managed in a transparent and accountable way to prevent opportunistic behavior.
Improved management of regional business profits: Regional business profits should be managed in a transparent and accountable way to prevent opportunistic behavior.
Strengthening of internal control systems: Internal control systems should be strengthened to prevent opportunistic behavior and ensure that public finances are managed in a transparent and accountable way.

Q: What are the limitations of this study?

A: This study has several limitations. Firstly, the study is based on secondary data, which may not be comprehensive or up-to-date. Secondly, the study only focuses on the effects of regional levies, profit sharing funds, remaining budget financing, and regional business profit on opportunistic behavior, and does not consider other factors that may influence opportunistic behavior.

Q: What are the future research directions?

A: Future research directions include:

Investigating the effects of other factors on opportunistic behavior: Future studies should investigate the effects of other factors, such as corruption, political instability, and economic conditions, on opportunistic behavior.
Examining the impact of policy interventions on opportunistic behavior: Future studies should examine the impact of policy interventions, such as improved management of regional levies, increased transparency in revenue sharing funds, and better management of remaining budget financing, on opportunistic behavior.
Developing a comprehensive framework for understanding opportunistic behavior: Future studies should develop a comprehensive framework for understanding opportunistic behavior, including its causes, consequences, and prevention strategies.