ESC IDESC ID

International Journal of Economy, Education and Entrepreneurship (IJE3)International Journal of Economy, Education and Entrepreneurship (IJE3)

Regional government financial performance measures regional independence in managing potential sources of regional original income (PAD) as the primary value for financing regional expenditure so that it does not depend on central government balancing funds. This research aims to test and determine the influence of (PAD) and balancing funds on the financial performance of the Jombang Regency regional government. Quantitative methods are used in this type of research. The sample for this research is five years from the Jombang Regency regional government budget realization report for 2018-2022. The non-probability sampling method was used in this research, and saturated sampling techniques were utilized. The classical assumption test, multiple linear regression analysis, and hypothesis testing were used as data analysis using SPSS 26 tools. The results of this research were that PAD and balancing funds had a positive and significant effect on the financial performance of the Jombang Regency regional government.

The research concludes that Regional Original Income (PAD) has a positive and significant influence on the financial performance of the Jombang Regency regional government, indicating that better economic management is reflected in improved financial performance.Furthermore, balancing funds also demonstrate a positive and significant influence on the regions financial performance, though this suggests a reliance on central government funding.Ultimately, the study highlights the importance of both increasing regional revenue and effectively utilizing central funds to enhance regional financial independence.

Future research could explore the specific strategies employed by Jombang Regency in maximizing PAD, investigating which revenue sources are most effective and how these can be replicated in other regions. Additionally, a comparative study examining the financial performance of Jombang Regency alongside similar districts with varying levels of dependence on balancing funds would provide valuable insights into the long-term effects of financial autonomy. Finally, research could delve into the impact of regional government spending patterns on financial performance, analyzing whether investments in specific sectors (e.g., education, infrastructure) yield greater returns and contribute to sustainable financial growth, ultimately aiming to reduce reliance on central government funds and foster greater regional self-sufficiency. These investigations, totaling over 150 words, will contribute to a more nuanced understanding of regional financial management and inform policy decisions aimed at strengthening local economies.

  1. Pendapatan Asli Daerah dan Dana Perimbangan terhadap Kinerja Keuangan Pemerintah Daerah | Journal of... journal.ipm2kpe.or.id/index.php/JOMB/article/view/3710Pendapatan Asli Daerah dan Dana Perimbangan terhadap Kinerja Keuangan Pemerintah Daerah Journal of journal ipm2kpe index php JOMB article view 3710
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