Analysis of Fiscal Capability of The City of Palopo Indonesia in 2019, 2020, 2021, 2022 and 2023

Abstract

In this study, we are looking at the fiscal capability of the city of Palopo, whether it is in the low category, medium category or high category. The analysis in this study uses descriptive and quantitative analysis by evaluating various regional budget components along with other aspects such as population.In the descriptive analysis, it was found that regional budget components such as local original income, profit sharing funds, other income, general allocation funds and personnel expenditures have increased every year and the population has also increased every year. In the quantitative analysis, the calculation results showed that, in 2019, the calculated value for fiscal capacity was 22.08%, this shows that the fiscal capacity of the city of Palopo is classified as low. In 2020, the calculated value of fiscal capacity was 42.18%, this shows that the fiscal capacity of Palopo City is classified as high. In 2021, the calculated value for fiscal capacity was 26.76%, this shows that fiscal capacity is classified as low. In 2022, the value obtained from the fiscal capacity calculation is 26.89%, this shows that the fiscal capacity of the city of Palopo is of low qualification. Then in 2023, the results obtained from calculating the fiscal capacity were 17.16%, this shows that the fiscal capacity of the city of Palopo still has low qualifications.