How Local Governments Innovate to Increase the Regional Fiscal

Abstract

In regional development, local governments’ innovations are absolutely necessary. The innovatios are conducted through governance and accounting. Nevertheless, in developing the regional it is needed the financial. In West Java Province, the fenomena show that most districts and cities have lower Own-Source Revenue (PAD) which accounts for about 20%. Meanwhile, the local governments’ balance transfers (dana perimbangan) is higher. Thus, the development in the region in only operational. In the modern management, funding for regional development has the other options, such as funding and investment. For that purpose, the local governments should innovate to obtain funding and investment or optimize the existing operational funds. This study focuses on the innovations conducted by the local governments in increasing the regional fiscal. The primary data are gained from the local governments’ official documents around West Java Province. The data are analyzed through qualitative study particularly with descriptive analysis technique. The findings show that most districts and cities around West Java Province conduct the innovations through e-budgetting, namely regional financial management information system (SIPKD).