ANALYSIS OF FINANCIAL BALANCE RELATIONSHIP BETWEEN CENTRAL AND REGIONAL GOVERNMENTS IN WEST TANJUNG JABUNG REGENCY

Abstract

Fiscal balance policy between central government andWest Tanjung Jabung Regency Government can be analyzed through several crucial indicators. First, the large number of civil servants in West Tanjung Jabung Regency results in a significant allocation of the Regional Revenue and Expenditure Budget (APBD) being absorbed into personnel expenditures. Second, the low Regional Original Income (PAD) in West Tanjung Jabung Regency is caused by a lack of space for regional creativity in exploring its resources. Third, the minimal quality of public services, such as access to clean water, good road conditions, and public street lighting, has resulted in the public not fully feeling the presence of the government. The current fiscal balance system still leaves several gaps. These include frequent delays in fund disbursement, subjectivity in central government assessments, high revenue sharing with the central government, the absence of a regional objection mechanism, and vulnerability to budget mafia. In the context of implementing fiscal decentralization, it is highly recommended that regional governments receive more optimal space to explore their resources, for the sake of smooth and independent regional governance. This condition will certainly support the central government in implementing the national economy. Thus, the phenomenon of regional dependence on the central government can be minimized, while also reducing central subsidies to regions.