THE INFLUENCE OF REGIONAL SPENDING AND ECONOMIC GROWTH ON REGIONAL FINANCIAL INPENDENCE IN JAMBI PROVINCE
DOI:
https://doi.org/10.22437/jar.v6i3.55179Keywords:
Regional Expenditure, Economic Growth, Regional Financial Independence, Local Revenue, Panel DataAbstract
This study aims to analyze the effect of regional expenditure and economic growth on regional financial independence in Jambi Province during the period 2020–2024. The descriptive analysis shows that regional expenditure and economic growth in Jambi Province experienced fluctuations during the study period, particularly due to the impact of the COVID-19 pandemic, but generally indicated a recovery trend. Meanwhile, the level of regional financial independence remains relatively low, as reflected by the high dependence on central government transfers. The regression results indicate that regional expenditure has an effect on regional financial independence, while economic growth also contributes to enhancing fiscal capacity. Simultaneously, both regional expenditure and economic growth influence regional financial independence.
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