DETERMINANTS OF LOCAL REVENUE IN BANYUMAS REGENCY

Abstract

This research aims to analyze the influence of macroeconomic variables referring to population, inflation, and the open unemployment rate (TPT), on local own-source revenue (PAD) in Banyumas Regency, which shows a relatively low contribution of only 24% to total regional income in 2024. Over the past decade, the declining trend in PAD performance highlights the suboptimal utilization of the region’s fiscal potential and continued dependence on central government transfer funds. A quantitative descriptive approach was applied using multiple linear regression analysis on secondary data from 2007 to 2024 (excluding 2016), sourced from the Central Statistics Agency, budget realization reports, and relevant local government documents. The results indicate that, simultaneously, population, inflation, and TPT significantly affect PAD. However, partially, only population and TPT have significant effects on PAD, while inflation does not show a significant impact. These findings emphasize the importance of formulating a more targeted strategy for managing local taxes and levies, including intensification, extensification, and digitalization of the collection system, as well as adopting adaptive measures to respond to macroeconomic dynamics to optimize regional revenue and strengthen the fiscal independence of Banyumas Regency sustainably.