UNIMAL Open Conference System, 2nd International Conference on Finance Economics and Business (ICOFEB)

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Assessing the Fiscal Strength and Resource Potential of the Aceh Government
Teguh Firzana Putra, Cut Dian Fitri, Ana Fitria

Last modified: 2023-11-01

Abstract


The considerable variations in Aceh Province's Original Local Government Revenue (PAD) between 2018 and 2022 serve as the impetus for this investigation. It is essential to comprehend the connection between Aceh's economic progress and the region's financial capability. This study's main goal is to assess Aceh Province's regional financial capability in-depth during the given period of time. Our approach employs a quantitative descriptive methodology using secondary data collected via documentation techniques. The results indicate that Aceh Province has a largely favorable view on its regional financial capabilities, placing it in the "very good" category. Despite having "very low" fiscal decentralization, Aceh Province has a considerable degree of financial independence from the national government, which forms the basis of this classification. Regional financial effectiveness is still challenging to achieve, indicating that efficiency has to be improved.In terms of financial efficiency within the Aceh Provincial government from 2018 to 2022, it falls within the spectrum of 'less' to 'fairly efficient.' This research contributes to a nuanced understanding of Aceh Province's financial landscape and its potential for sustained economic growth.

Keywords


financial capacity; original local government revenue, Aceh