xxiii Based on the explanation above, the researcher proposes several problems
in this research, which are: 1. Whether the fiscal decentralization which is prioritized by balance fund and
others revenue influence on the local original revenue of regencies and municipalities in Indonesia.
2. Whether the fiscal decentralization through the proxy of balance fund, others revenue, and local original revenue influence on the public expenditure.
C. Research Purpose
According to the problem formulation, the purpose of this research is to provide empirical evidence about:
1. The influence of fiscal decentralization components prioritized balance fund
and others revenue on the increasing of local original revenue 2.
The influence of fiscal decentralization through the proxy of balance fund, others revenue, and local original revenue on the public expenditure of
regencies and municipalities in Indonesia.
D. Research Contributions
This research is expected to provide contributions as follow: 1.
The result of the research is expected to be useful in understanding the influence of fiscal decentralization on the increasing local original revenue
and public expenditure.
xxiv 2.
The result of the research is also expected to be useful for decision maker in local government, public sector institutions as one of matter consideration to
improve decentralization policy. In order to the implementation fitted with the expectation in the using of the resources economically, efficiently, fairly, and
covers all area, so the public accountability can be reached and government accountability can be improved. In practice, it could lead legislative and
executive can make an accurate planning revenue and expenditure and it will be useful input to determine further policy.
3. Moreover, the result of the research could be a reference for the academic
related to the fiscal decentralization and could be a reference for another following research.
E. Writing Systematics
The writing systematic will be discussed in this study are: Chapter I
: Introduction To explain concerning with the background of the study, problem
statement, research purpose, and research contributions. Chapter II
: Literature Review and Hypothesis Development This chapter consist of theory which related to the fiscal
decentralization and public expenditure. It will explain the literarture review, the previuos researches in developing of the
research hypothesis and conseptual schema. Chapter III : Research Method
In this chapter will be discussed related to the research design, population and sample, data collection, variable, and analysis
technique.
xxv Chapter IV : Data Analysis
This chapter explains about analysis results toward data which used in this research and analysis results discussion.
Chapter V : Conclusion and Recommendation This chapter consists of research conclusion, limitation, and
recommendation of the study.
xxvi
CHAPTER II LITERATURE REVIEW AND HYPOTHESIS DEVELOPMENT
