DETERMINANTS OF REGIONAL TAX REVENUE REALIZATION IN MAGELANG CITY

Abstract

Local tax revenue plays a crucial role in financing public facilities and services. However, Magelang City has consistently ranked the lowest in municipal local tax revenue among regencies and cities in Central Java. This study analyzes the influence of population, GRDP, and capital expenditure on local tax revenue in Magelang City from 2010 to 2023. Using secondary time-series data from the Directorate General of Fiscal Balance and the Central Bureau of Statistics, the study employs multiple linear regression analysis with Eviews 12. The results indicate that population and GRDP have a positive and significant impact on local tax revenue, while capital expenditure has a negative and insignificant effect. Simultaneously, these three variables significantly influence local tax revenue. The findings suggest that the government should enhance economic participation through job training in key sectors such as manufacturing, services, and technology, along with entrepreneurial training to support MSMEs. Additionally, local tax revenue can be increased by strengthening leading economic sectors and optimizing capital expenditure for strategic infrastructure development, such as roads, bridges, and markets. These measures can boost economic activity and ultimately improve tax revenue collection in Magelang City.