The Effect of Village Expenditure Ratio on Village Income in  Kota Pari Village, Serdang Bedagai Regency

Oktarini Khamilah Siregar; Vina Arnita; Mustika Tupa Sihombing

doi:10.61132/ijems.v1i2.483

Authors

Oktarini Khamilah Siregar Panca Budi Development University
Vina Arnita Panca Budi Development University
Mustika Tupa Sihombing Panca Budi Development University

DOI:

https://doi.org/10.61132/ijems.v1i2.483

Keywords:

Village Expenditure, Village Income, Kota Pari Village

Abstract

The purpose of this study is to analyze the relationship between village expenditure and village income in various sectors such as village governance, village development, community development, and disaster management in Kotabari Village, Serdang Pedagai Regency, over the period of 2015-2022. The findings indicate that while village expenditure in the village government sector plays a role in influencing village income, expenditure in the areas of village development, community development, and disaster management does not have a significant impact on village income in Kotabari Village. To address this, the village government of Kotabari City aims to balance the distribution of village income by allocating no more than 40% of village expenditure to each sector. The government also plans to allocate funds towards community-focused activities, such as village-wide festivals, which aim to promote local small and medium-sized enterprises and introduce their products to a broader market, both within Indonesia and internationally. Furthermore, it is crucial for the Kotabari Village Government to be more strategic and productive in its budgeted expenditure allocation, as this can stimulate an increase in village income, particularly in terms of village-owned revenue, and move the village towards greater independence and financial sustainability.

Downloads

Download data is not yet available.

References

Anugeraheni, N. K., & Yuniarta, G. A. (2022). Analysis of village financial performance using regional financial ratios in the Pejarakan Village government, Gerokgak District, Buleleng Regency in 2015–2019. Scientific Journal of Accounting Students, Ganesha University of Education, 13(2), Singaraja, Bali.

Bastian, I. (2011). Public sector accounting (3rd ed.). Yogyakarta: ANDI.

Central Statistics Agency. (2021). Village government financial statistics 2018–2021. Jakarta: Central Statistics Agency.

Damayanti, A., Surianto, S., Sarong, S., Sumarni, & R. Baso. (2021). Analysis of financial management in assessing village financial performance: A study on Bontomanai Village, Gowa Regency. Scientific Journal of Ecosystem, 21(3), 654–666. September–December.

Demora, V. (2016). Analysis of the degree of decentralization and independence of PAD and its relationship with regional spending productivity in Jambi City. e-Journal of Economic and Regional Development Perspectives, 5(1), 1–16.

Deswira, A. (2022). Analysis of regional financial management performance: A case study on the regional government of Tanah Datar Regency. Accounting and Management, 17(1), 72–88. https://akuntansi.pnp.ac.id/jam. e-ISSN 2657-1080, p-ISSN 1858-3687.

Fakhry, S. M. (2017). The effect of financial performance on the capital expenditure allocation of regency and city governments in Lampung Province. http://digilib.unila.ac.id.

Fatmaningsih, L., & Pardi. (2021). Analysis of village expenditure on village fund allocation income during the Covid-19 pandemic: Study of Gondangrejo District, Karanganyar Regency. Journal of Accounting and Tax, 22(01), 404–413. ISSN 1412-629X, e-ISSN 2579-3055.

Government Regulation of the Republic of Indonesia No. 43 of 2014 concerning implementation regulations of Law No. 6 of 2014 concerning villages.

Government Regulation of the Republic of Indonesia No. 71 of 2010 concerning government accounting standards.

Indiyanti, N. M. D. (2018). The effect of regional financial performance on capital expenditure allocation in Bali Province. Journal of Management of UNUD.

Irma. (2015). Accountability of village fund allocation management (ADD) in South Dolo District, Sigi Regency. Journal of Catalogs, 3(1). http://jurnal.untad.ac.id.

Marlianita, Y., & Abdullah, S. S. (2020). The effect of the degree of decentralization ratio, regional financial dependency ratio, and SiLPA financing rate ratio on capital expenditure allocation in regency/city governments in West Java Province. Indonesian Accounting Research Journal, 1(1), 25–35.

Martiastuti, H. I., Nugroho, A., & Widyawati. (2021). Analysis of financial performance in the village revenue and expenditure budget (APBDes) in Meurah Dua District, Pidie Jaya Regency. Scientific Journal of Agricultural Students, 6(2), 1–10. E-ISSN: 2614-6053, P-ISSN: 2615-2878.

Ministry of Home Affairs. (1997). Ministry of Home Affairs No.690.900.327, 1996, concerning guidelines for assessment and performance finance.

Nasution, A. P., Handoko, B., & Pohan, I. R. A. (2018). Analysis of the influence of regional original revenue, central government transfers, and regional expenditure efficiency on regional financial independence of regencies/cities in North Sumatra Province. Journal of Business & Public Accounting, 9(1), 35–44.

Nasution, D. A. D. (2018). Analysis of the influence of regional financial management, accountability, and transparency on government financial performance. Journal of Accounting & Finance Studies, 2(3), 1–12.

Nasution, N. A. (2017). Analysis of the influence of economic growth and regional original income on the financial performance of regency and city governments in North Sumatra Province. Journal of Business and Public Accounting, 8(1), 1–13.

Novita, I. (2020). The effect of regional financial performance on capital expenditure allocation: Study on regional governments of regencies/cities in West Java for the fiscal year 2012–2017. http://journal.ubpkarawang.ac.id.

Praza, E. I. (2016). Analysis of the influence of financial performance on capital expenditure allocation in Jambi Province. Journal of Financing and Regional Development Perspectives. https://online-journal.unja.ac.id.

Ramadhani, D. A., Hisamuddin, N., & Shultoni, M. (2019). Financial ratio analysis to assess APBdesa's performance: Case study of Bulak Village, Bendo District, Magetan Regency. Journal of Accounting, University of Jember, 17(1), 35–46.

Regulation of the Minister of Home Affairs No. 21 of 2011 concerning the second amendment to the Regulation of the Minister of Home Affairs No. 13 of 2006 concerning guidelines for regional financial management.

Regulation of the Minister of Home Affairs of the Republic of Indonesia No. 113 of 2014 concerning village financial management.

Rohman, F., Yanto, R., & Novian, M. (2017). Analysis of the financial performance of the village government in Jepara Regency: Case study of the Jambu Village government. Journal of Accounting and Taxation, 3(2), 1–9. http://jurnal.unmer.ac.id/index.php/ap.

Rosaliena, V., & Zulkifli. (2019). Ratio analysis to assess the regional financial performance of Gunungkidul Regency in 2013–2017. Journal of Business Studies, 27(2), 175–189.

Sari, A. K., Saputra, H., & Chrisna, H. (2021). Model for identification of system leakage/waste of budget of regency/city government of North Sumatra Province. National Halal Seminar, 2021, Panca Budi Development University.

Sartika, N., Kirmizi, & Novita, I. (2017). Analysis of factors in the structure of the APBD and financial performance that affect capital expenditure in districts/cities in Riau Province. https://www.neliti.com/publications/2350.

Shah, F., Aulia, & Hididayat, M. (2021). Analysis of village income and expenditure: Case study at the Biji Nangka Village Office, Sinjai Borong District. Economix Journal, 9(1), 1–12.

Siregar, O. K., & Panggabean, F. (2021). Analysis of regional financial performance based on ratio and economic growth in North Sumatra regency and city governments (Mebidangrokat case study). Journal of Accounting and Business, 11(2), 101–113.

Siregar, O. K., & Siahan, A. P. U. (2018). Effectiveness, efficiency, and growth ratios on financial performance on Medan City government. International Journal for Innovative Research in Multidisciplinary Field, 4(10), 1–9.

Sugarwati, I. (2021). Analysis of the degree of fiscal decentralization in districts/cities in Indonesia ahead of 20 years of regional autonomy. Welfare Journal of Economics, 2(2). http://jurnal.unsil.ac.id/index.php/welfare.