68 2.
Flypaper effects were found in 10 districts cities in the Lampung province by analyzing the composition of the Local Government
Revenue and Expenditure Budget APBD between the PAD, and the Balanced Budget.
B. Recommendations
1. Local Government
Since there could be found a Flypaper effect in 10 districts cities in the Lampung province by analyzing the composition of the
Local Government Revenue and Expenditure Budget APBD between the PAD, and the Balanced Budget. The basic function of Balanced
Budget serves as a transfer of funds from the central government from the state budget to cover the fiscal gap, but in fact it has become the
main source of local government revenues. It is suggested that local governments should get enabled to identify area potential in order to find
their opportunities for revenues, they are able to exploit. a.
Improving PAD strategy Original
Local Government
Revenues PAD
are spearheading the organization of local governments, various
government activities both principal and co-administration tasks must be balanced by the sufficient amount of PAD as the locomotive
for local government programs. In order to the presence of PAD the amount of local government expenditures need to not excess the
69 original local government revenues, management strategies are
required. Special focus should be paid to the increase of Original Local Government Revenues PAD and could be stated as follows:
1. Local taxes
a. give taxes and retributions which are still held by the
Central government to local government by considering the factors of economic efficiency, mobility and object tax
stabilization and distribution functions of the tax itself. The taxes include:
i. The land and building tax PBB and Tax on Acquisition
of Land Buildings BPHTB can be diverted to areas where the foundation is authorized to establish taxes rate
and tariffs at a certain level though its administration still done by the Centre.
ii. Income Tax PPH can be transferred in the form of
piggy back where the local government has the rights to set their tax policy according to regional consideration
economic situation ,under supervision of central government.
iii. Re-collecting taxpayers data and the tax object in the
framework of exploring the potential of the region as well as improve services or facilities that can be enjoyed
by the citizen and government. For a example, by
