Impact Analysis of the Influence of Institutional Capacity and the Use of Performance-Based Budgeting on Original Regional Revenue Receipts in the Tanggerang Regency Area

This study aims to analyze the impact of institutional capacity and the use of performance-based budgeting on local revenue (PAD) in the Tangerang Regency area. This research uses a quantitative descriptive analysis method using secondary data obtained from various trusted sources. This research identifies institutional capacity, which includes aspects of human resources, institutional systems, and managerial capacity, and analyzes the implementation of performance-based budgeting to increase PAD revenues. The results of the analysis show that strong institutional capacity significantly contributes to increasing PAD revenues. Apart from that, the use of performance-based budgeting has also been proven to have a positive impact on PAD revenues. The implication of this research is the importance of increasing institutional capacity and implementing performance-based budgeting effectively as a strategy to increase PAD revenues in Tangerang Regency. This study makes an important contribution in the context of regional financial development and public financial management, as well as providing a basis for more effective policymaking in increasing regional income.


INTRODUCTION
One of the requirements of government organizations, which additionally predominantly determines the progress of local states in fulfilling government capabilities, is the requirement for provincial support (Nuradhawati, 2019).At the very least, the functions of development, community empowerment, and public service that are being carried out by the government in question are included in their implementation.The point of carrying out these three government capabilities is obviously to acknowledge local government assistance (Yaqub & Suradinata, 2019).
The requirement for territorial funding can be distinguished from the use segment, which is organized in the Provincial Income and Use Financial Plan (APBD) (Wulansari, 2015).The provincial funding part is acquired from the government financial plan moves to the locales and from the receipt of unique territorial income and other authentic territorial incomes.Territorial support is not entirely set in stone by the degree of provincial financing needs.Thus, the more territorial government execution improves, the more the requirement for provincial support will naturally increase.In terms of territorial funding needs, the more prominent the district's capacity to meet its supporting necessities, the less reliant the locale will be on government monetary strategies (Khusaini, 2018).
In any case, running against the norm, the more modest the provincial ability to meet its funding needs, the more noteworthy the territorial reliance on government monetary approaches (Komara, 2013).The outcome of carrying out decentralization and provincial independence arrangements as controlled in Regulation Number 32 of 2004 concerning local government can be surveyed in terms of the area's capacity to meet territorial funding needs.
Step-by-step instructions to acknowledge straightforward, compelling, productive, and responsible provincial monetary and resource execution are one of the genuine difficulties for territorial states in carrying out decentralization and local independence approaches (Mardiasmo, 2021).
The division of power (political sharing) and financial sharing between the central government and regional governments is the core of Law No. 32 of 2004 (Basri, 2013).In practice, this power, local state-run administrations get assets from the focal government (specifically Broad Portion Assets (DAU) and Exceptional Allotment Assets (DAK), as well as wellsprings of Unique Provincial Pay (Cushion) and other authentic territorial pay (Ardhani & Ardiyanto, 2011).The implication for districts and cities is not only to concentrate on funds for financial balance but also to investigate and develop regional economic potential to further optimize the source of development funds for regions derived from regional original income and make it a contributor to future regional development funds (Azzumar & HANDAYANI, 2011).
To achieve the objectives of regional development, sufficient funding sources are required.To accomplish this, the focal government provided strategies in the field of territorial income, which were arranged to expand the capacity of locales to support their family issues and focused on preparing assets from provincial sources (ANGGRAINI PK, 2011) (Nasir, 2019).
Unique Local Pay (Cushion) is a huge kind of revenue for routine support and improvement in an independent district.How much income from local assessment and territorial duty parts is significantly impacted by the number of sorts of provincial expenses and provincial exacts not set in stone and acclimated to the pertinent guidelines connecting with the receipt of these two parts (PURWANTO, n.d.).Regional governments must be able to work toward increasing revenue derived from the region itself because PAD is anticipated to be the primary support for financing development activities in the region.This will expand the accessibility of territorial money, which can be utilized for different free improvement exercises.However, PAD still makes a small contribution to regional income and expenditure in several areas.Up to this point, the predominance of focal government commitments to these districts is still enormous, so to diminish reliance on the focal government, local states need to attempt to expand Cushion, one of which is by investigating provincial potential (Christina, 2013).
Tangerang Regency, as part of Banten Province, one of the regions that has an expansion area, also called the New Autonomous Region (DOB), will also try to increase regional development after its parent, namely Tangerang Regency.As an autonomous region, Tangerang Regency, in carrying out regional development, requires a reliable source of revenue.The development funds were managed entirely by the regional government and came from revenues from the Tangerang Regency regional government.The source of financing for government needs, Regional Original Income (PAD), comes from the processing of resources owned by the Tangerang Regency area, in addition to revenues from the Banten provincial government, the central government, and other regional revenues.In line with this authority, the Regional Government of Tangerang Regency is expected to be more able to explore financial resources, especially to meet government and development financing needs in the region through Original Regional Revenue.With the existence of a new autonomous area in the Tangerang Regency area, like it or not, the income from Tangerang Regency, which was previously in the South Tangerang City area, must be handed over to the new South Tangerang City government to be managed by the new government.This will certainly have an impact on reducing the income earned by Tangerang Regency.The income of a region, including Tangerang Regency, is summarized in its original regional income (PAD).One of the components of regional original income (PAD) is regional taxes.
This regional tax can be optimized by the regional government to increase its original regional income.The types of regency and city taxes according to Law Number 28 of 2009 concerning regional taxes and regional levies are: 1. hotel tax; 2. restaurant tax; 3. entertainment tax; 4. advertisement tax; 5. street lighting tax; 6. parking tax; 7. tax on non-metal minerals and rocks; 8. groundwater tax; 9. Swallow's nest tax; 10.PBB rural and urban; 11. fees for the acquisition of land and building rights.
Government science is a logical discipline that is firmly connected with the organization of government frameworks.As per (Suradinata, 1998), etymologically, the significance of government science can be separated into two, specifically the importance of science and the significance of government.Science implies information that is acquired etymologically and applies all around.In the meantime, government is the course of government exercises, the exercises of public establishments in their capability to accomplish state objectives.(Ndraha, 2000) said that administration science can be characterized as a science that concentrates on how the public authority (public work unit) attempts to satisfy and safeguard the requests (assumptions, needs) of the people who are represented by public administrations and common administrations in government relations.As per (Syafiie, 2011), government science is the science that concentrates on the most proficient method to complete administration (chief), guidelines (regulative), authority, and coordination of government (both focal and territorial) and individuals and their administration in different government occasions and side effects, well.
For this situation of decentralization, (Robi, 2023) says that the rule of decentralization is a standard that expresses the handover of various government undertakings from the central government or lower-level territorial states to lower-level local legislatures so they become family undertakings for the district.Alluding to this public help, (Setiawan, 2014) said, "The center public assistance undertakings of aggregate memory, strategy-centered exhortation, scholarly capital, and independence are fundamental for fruitful public administration.Along these lines, public administrations become a benchmark for the outcome of public administration.The public administration being referred to is government, which the executives did for the organization.In such a specific situation, a fundamental system for carrying out decentralization strategies is required.Thus, an insightful methodology is expected to figure out the essential structure of decentralization.For this situation, (Cohen, 2003) expressed, "Six ways to deal with recognizing types of decentralization can be distinguished in the writing."

RESEARCH METHODS
For this situation, this exploration utilizes quantitative examination strategies (Sugiyono, 2013).As per (Sugiyono, 2016), the populace is a summed-up region comprising items or subjects that comprise specific amounts not entirely settled by specialists to be concentrated and afterward drawn.
Because the research population is quite large and, as a result, difficult to reach as a whole, several respondents were selected from a portion of the population for the sample.(Umar, 2001) offered Gay's viewpoint that the base OK example size depends on the examination configuration utilized, specifically enlightening techniques, no less than 10% of the populace; for moderately little populaces, at least 20% of the populace; correlational illustrative strategy, at least 30 subjects; ex post facto technique, at least 15 subjects for every gathering; trial technique, at least 15 subjects for each gathering.
Concerning registration strategy, Rosady (Rosady, 2008) said: The justification behind leading statistics is that specialists ought to consider looking at all components of the populace if the populace components are moderately not many and the changeability of every component is high (heterogeneous).Registration is more plausible if the examination is expected to make sense of the qualities of every component of a population.

RESULTS AND DISCUSSION
Original Regional Revenue (PAD) is one of the sources of revenue for Tangerang Regency, not only showing indicators of performance achievement in managing sources of original regional revenue but also showing indicators of the Tangerang Regency Government's ability to implement decentralization and regional autonomy policies.With these indicators, Tangerang Regency, which is on the Sumatra-Java crossing and close to DKI Jakarta Province, certainly has the potential to receive original regional income such as regional tax revenue, regional levies, proceeds from regionally owned companies, management of separated regional assets, and other income.-other valid.
The performance of managing the potential for regional original revenue certainly depends on the institutional capacity of the Regional Revenue Agency and the use of performancebased budgeting at that agency.shows that the influence of the use of performance-based budgeting on Tangerang Regency's PAD revenue has proven to be positive.This means that it can be proven that there is a causal relationship between the use of performance-based budgeting and Tangerang Regency's PAD revenue.Testing the influence of these two variables shows a probability value of 0.000 (P<0.05),so: The second hypothesis proposed is that the magnitude of the influence of the use of performance-based budgeting on Tangerang Regency's PAD revenue is determined by the efficiency of public services in the field of managing PAD revenue sources and effectiveness.public services in the field of managing PAD revenue sources.

Analysis of the Impact of Institutional Capacity on Tangerang Regency's Original Regional Income Revenue
Based on the results of measuring the influence of institutional capacity ( 1) on Tangerang Regency's PAD revenue ( ), it is known that the magnitude of the influence of institutional capacity on Tangerang Regency's PAD revenue reaches 0.64.The magnitude of this effect is considered strong and significant because statistic: 13.51 > value: 1.96.The magnitude of the influence of institutional capacity on Tangerang Regency PAD revenue is theoretically determined by vision and mission, (2) leadership, (3) resources, (4) partnerships, and (5) services and products.The magnitude of the influence of institutional capacity on Tangerang Regency PAD revenue is practically determined by 21 manifest variables of institutional capacity.The existence of this influence shows that between Institutional Capacity and PAD Revenues of Tangerang Regency, a meaningful cause-and-effect relationship is formed: if Institutional Capacity is increased or increases, then the increase in Institutional Capacity is stimulated, followed by an increase in PAD Revenues of Tangerang Regency.Therefore, practically, Tangerang Regency's PAD revenue can be increased by increasing 21 manifest variables (indicators) of institutional capacity.This means that the solution to the non-optimal PAD revenue of Tangeran Regency can be done by increasing the 21 manifest variables of the institutional capacity of the Regional Revenue Agency of Tangeran Regency.