Analysis of Tax Compliance and Impacts on Regional Budgeting and Public Welfare
Abstract: The research aims to
analyze the impacts of tax compliance on regional budgeting and public welfare
in East Java Province. Using the Partial Least Square (PLS) method, it
considers the following variables: tax compliance, regional finance, general
grant, special grant, regional expenditures, and Human Development Index (HDI).
The results indicate that tax compliance has significant impacts on regional
finance. Tax has significant positive impacts on regional
expenditures/spending. Conversely, regional spending affects public social
welfare in East Java Province. The research concludes that tax compliance gives
significant positive impacts on public welfare in East Java Province during the
2004-2009 period. The prevalent policy implies that regional government has to
secure regional financial balance to improve public welfare in East Java
Province. The regional government is to promote public awareness that tax
compliance is crucial to improve tax revenues and public welfare.
Keywords: tax compliance,
regional finance, regional expenditures, partial least square, public welfare
Author: TIMBUL HAMONANGAN
SIMANJUNTAK AND IMAM MUKHLIS
Journal Code: jpadministrasinegaragg120015
