THE INFLUENCE OF FINANCIAL AUTONOMY, CAPITAL EXPENDITURE, AND UNEMPLOYMENT RATE ON FINANCIAL SUSTAINABILITY IN PROVINCIAL GOVERNMENTS IN INDONESIA
Keywords:
Financial autonomy capital expenditure, unemployment rate, financial sustainability, provincial government.Abstract
This study aims to assess the impact of financial autonomy, capital expenditure, and unemployment rates on the financial sustainability of provincial governments in Indonesia. The findings of this research are crucial for providing guidance to provincial governments in formulating effective policies to improve financial sustainability. The study analyzes data from 34 provincial governments in Indonesia, utilizing panel data regression analysis with E-Views version 12. The data was obtained from the audited financial reports of these provinces for the period 2017 to 2022. Financial sustainability is assessed through the revenue surplus reported in the operational reports. The results show that financial autonomy does not significantly affect financial sustainability, capital expenditure has a positive impact on financial sustainability, and unemployment does not significantly influence financial sustainability.
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