Proceedings of the First Padang International Conference On Economics Education, Economics, Business and Management, Accounting and Entrepreneurship (PICEEBA 2018)

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Does Increasing Central Government Transfer Improve Local Government Performance? A Case of Aceh Provincial Government

Authors
Heru Fahlevi, Muhardiansyah Muhardiansyah, Aliamin Aliamin
Corresponding Author
Heru Fahlevi
Available Online July 2018.
DOI
10.2991/piceeba-18.2018.74How to use a DOI?
Keywords
local government, Special Autonomy Fund, and intergovernmental transfer
Abstract

The objective of this study is to evaluate the financial performance of Aceh after receiving a series of significant transfer fund under Special Autonomy Fund (SAF) since 2008. The data were collected from secondary sources i. e. 2009 to 2016 financial reports of Aceh provincial government and news from electronic media. A descriptive quantitative analysis was carried out to analyze the performance of Aceh government before and after the SAF implementation. This study demonstrates that having more money does not necessarily lead to a higher financial performance of local government. Based on the financial ratio analysis, the performance after the SAF implementation has increased slightly compared to that before SAF. Additionally, the expenditures have raised gradually particularly in regards to operational expenditures. This situation is problematic particularly after the end of SAF period as the portion of locally-generated revenue (LGR) compared the total revenue is smaller than the portion of the operational expenditures. Thus, it is imperative for the Aceh government to expand its LGR through investment and creating more revenue centers.

Copyright
© 2018, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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Volume Title
Proceedings of the First Padang International Conference On Economics Education, Economics, Business and Management, Accounting and Entrepreneurship (PICEEBA 2018)
Series
Advances in Economics, Business and Management Research
Publication Date
July 2018
ISBN
10.2991/piceeba-18.2018.74
ISSN
2352-5428
DOI
10.2991/piceeba-18.2018.74How to use a DOI?
Copyright
© 2018, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Cite this article

risenwbib
TY  - CONF
AU  - Heru Fahlevi
AU  - Muhardiansyah Muhardiansyah
AU  - Aliamin Aliamin
PY  - 2018/07
DA  - 2018/07
TI  - Does Increasing Central Government Transfer Improve Local Government Performance? A Case of Aceh Provincial Government
BT  - Proceedings of the First Padang International Conference On Economics Education, Economics, Business and Management, Accounting and Entrepreneurship (PICEEBA 2018)
PB  - Atlantis Press
SP  - 577
EP  - 582
SN  - 2352-5428
UR  - https://doi.org/10.2991/piceeba-18.2018.74
DO  - 10.2991/piceeba-18.2018.74
ID  - Fahlevi2018/07
ER  -