Analysis of Vertical and Horizontal Fiscal Imbalances in the Regency/city of Bangka Belitung Islands Province for the 2017–2022 Period

Nindy Artha Della (), Devi Valeriani and Eka Fitriyanti
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Nindy Artha Della: Universitas Bangka Belitung, Faculty of Economics and Business
Devi Valeriani: Universitas Bangka Belitung, Faculty of Economics and Business
Eka Fitriyanti: Universitas Bangka Belitung, Faculty of Economics and Business

A chapter in Proceedings of the 1st International Conference of Economics, Management, Accounting, and Business Digital (ICEMAB 2024), 2024, pp 149-157 from Springer

Abstract: Abstract Economic growth is one of the ways to contribute to a country’s development. The government of a country, both developed and developing countries, has implemented the principle of decentralization in administering its government. The implementation of fiscal decentralization in supporting the regional development process has many obstacles. One of them is the gap between fiscal capacity (fiscal capacity / revenue capacity) and fiscal need (fiscal needs / spending needs) that occurs at the government level. This study aims to analyze and examine Vertical Fiscal Imbalance and Horizontal Fiscal Imbalance in the Regency / City of Bangka Belitung Islands Province for the 2017–2022 Period. This research falls under the category of quantitative research. The data for study comes from secondary sources, obtained from the Central Statistics Agency of all districts/cities in the Bangka Belitung Islands Province and the Directorate General of Fiscal Balance of the Ministry of Finance. The data was analyzed using the Vertical Fiscal Inequality Correlation Coefficient analysis and the Theil Index. The results showed that there was a vertical fiscal imbalance in the regencies/municipalities of the Bangka Belitung Islands Province for the 2017–2022 period as seen from the results of CV1 and CV2 experiencing unstable conditions, while CV3 experienced fluctuations. There is also a horizontal fiscal imbalance in the district/city of Bangka Belitung Islands Province as seen from Type 1 and Type 3 experiencing fluctuations. While Type 2 experiences fluctuations. However, there are two districts that have the same value.

Keywords: Vertical Fiscal Imbalance; Horizontal Fiscal Imbalance; Vertical Fiscal Inequality Correlation Coefficient; Theil Index (search for similar items in EconPapers)
Date: 2024
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DOI: 10.2991/978-94-6463-614-7_20

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