Analysis of Village Income and Expenditure in Aceh with Institutional Moderation
Article Sidebar
-
Flypaper Effect, Village Original Income, Village Expenditure, Transfer Income, BUMDes
Abstract
This study examines the financial dynamics of village governance in Aceh Province, particularly focusing on how different income sources influence village expenditure and the role of institutional factors in this relationship. The main aim of this research is to analyze the influence of village original income and transfer income on village spending with institutions as a moderating variable in Aceh Province. The data used in this research is secondary data in the form of quantitative data which includes the realization of village original income, the realization of village and institutional expenditure which is proxied as a regional competitiveness index, while transfer income consists of the realization of village funds, the realization of revenue sharing for district/city taxes and levies, the realization of village fund allocations, the realization of provincial financial assistance, and the realization of district/city financial assistance. The data in this research was obtained through the Central Statistics Agency and the National Research and Innovation Agency. The research results show that first, the flypaper effect has an impact on village spending with an increase in transfer income that is higher than the increase in original village income; second, institutions have a negative and significant effect on the relationship between transfer income and village expenditure. This means that institutions with good governance can be more effective in reducing income transfers for village spending. By reducing transfer income, institutions will try to optimize the village's original income based on the potential of the village area developed through BUMDes, so that it will have an impact on increasing village spending.
Full text article
References
[1] P. Purwanto, C. I. Yuliana, M. T. Sambodo, M. Nadjib, U. K. Yaumidin, S. Hidayat, J. Suryanto, A. Hidayatina, A. Rahmayanti, F. W. Handoyo et al., “Towards a new approach to community-based rural development: Lesson learned from indonesia,” Available at SSRN 4911244, 2023.
[2] T. W. Nugroho, M. S. Rahman, H. Toiba, N. D. Andriatmoko, R. Hartono, and M. I. Shaleh, “Does financial literacy matter for village-owned enterprises’(voes) performance? evidence from east java indonesia,” Cogent Social Sciences, vol. 9, no. 2, p. 2263945, 2023.
[3] M. R. Aulia, Z. Lubis, I. Effendi et al., “Leveraging quality management and partnership programs for technopreneurial success: Exploring their impact on msme performance,” Aptisi Transactions on Technopreneurship (ATT), vol. 5, no. 2, pp. 157–168, 2023, https://doi.org/10.34306/att.v5i2.303.
[4] R. Sudiarso and I. Isnaini, “Strategy of village owned enterprises (bumdes) in increasing village original income (pades) gresik regency strategi badan usaha milik desa (bumdes) dalam meningkatkan pendapatan asli desa (pades) kabupaten gresik,” Indonesian Journal of Cultural and Community Development, vol. 11, 2022.
[5] H. Hasanuddin, F. Mansyur, A. Malik, and F. Fitrayani, “The role of economic education in optimizing local resource potential to increase community income,” Journal of Islamic Economics Lariba, vol. 11, no. 2, 2025.
[6] I. Hastuti, A. K. Putri, and T. F. Destiana, “The effect of village income, village funds and village allocation of funds on village expenditures in indonesia,” Implikasi: Jurnal Manajemen Sumber Daya Manusia, vol. 1, no. 1, pp. 7–11, 2023.
[7] United Nations, “Sustainable development goals,” https://sdgs.un.org/goals, 2023, accessed: 2025-05-09.
[8] H. Hamsinah, U. Rusilowati, and D. Sunarsi, “Analysis of lecturer competency and knowledge in technopreneurship development of student msmes in pts,” Aptisi Transactions on Technopreneurship (ATT), vol. 6, no. 3, pp. 623–638, 2024, https://doi.org/10.34306/att.v5i2.303.
[9] R. Hilmawan, Y. Aprianti, D. T. H. Vo, R. Yudaruddin, R. F. A. Bintoro, Y. Fitrianto, and N. Wahyuningsih, “Rural development from village funds, village-owned enterprises, and village original income,” Journal of Open Innovation: Technology, Market, and Complexity, vol. 9, no. 4, p. 100159, 2023.
[10] S. Alam and B. H. Simanjuntak, “Effect of fund transfer, revenue on development index as moderation variables,” Journal of Business Social and Technology, vol. 4, no. 1, pp. 32–42, 2023.
[11] N. Silitonga, A. H. Manurung, S. Mayangsari, and P. Sormin, “The moderating effect of regional indpendence on the effect of financing policies, capital expenditure and transfer fund towards the performance of local governments,” Turkish Journal of Computer and Mathematics Education, vol. 12, no. 3, pp. 5239–5251, 2021.
[12] V. El Ardeliya, J. Taylor, and J. Wolfson, “Exploration of artificial intelligence in creative fields: Generative art, music, and design,” International Journal of Cyber and IT Service Management (IJCITSM), vol. 4, no. 1, pp. 40–46, 2024.
[13] J. Siswanto, V. A. Goeltom, I. N. Hikam, E. A. Lisangan, and A. Fitriani, “Market trend analysis and data-based decision making in increasing business competitiveness,” Sundara Advanced Research on Artificial Intelligence, vol. 1, no. 1, pp. 1–8, 2025.
[14] T. Sukarnoto, Y. Janwari, E. Solehudin, and S. Mulyawan, “Women’s empowerment as a moderator variable in the role of sharia microfinance inclusion in strengthening the family economy,” Journal of Economics, Finance and Accounting Studies, vol. 5, no. 6, pp. 14–26, 2023.
[15] A. Faturahman, H. Hamdan, M. F. Fazri, U. Rahardja, and A. Vallery, “Inclusive ai interaction framework for enhancing happiness and care within orange technology applications,” Journal of Orange Technology, vol. 2, no. 1, pp. 1–12, 2025.
[16] S. Ahamad, H. A. A. Al-Jaifi, and K. U. Ehigiamusoe, “Impact of intellectual capital on microfinance institutions’ efficiency: The moderating role of external governance,” Journal of the Knowledge Economy, vol. 14, no. 2, pp. 691–717, 2023.
[17] A. Karim, A. Ahmad, and I. Syamsuddin, “An empirical study on the impact of village fund on economic growth and poverty alleviation,” Journal of Logistics, Informatics and Service Science, vol. 11, no. 9, pp. 333–352, 2024.
[18] C. Yang, D. Zhou, M. Zou, X. Yang, Q. Lai, and F. Liu, “The impact of social capital on rural residents’ income and its mechanism analysis—based on the intermediary effect test of non-agricultural employment,” Heliyon, vol. 10, no. 14, 2024.
[19] R. Rahmawati, C. P. M. Sari et al., “The effect of village funds and village fund allocations on poverty levels in peureulak sub-district, east aceh district.” Journal of Malikussaleh Public Economics, vol. 7, no. 2, pp. 21–27, 2024.
[20] H. Ahmad, C. Taufiq, and P. Endar, “Determinants of accountability for village fund management with local wisdom values of the sasak tribe as moderation,” Russian Journal of Agricultural and Socio-Economic Sciences, vol. 143, no. 11, pp. 67–82, 2023.
[21] A. Hariyanto, B. Juanda, E. Rustiadi, and S. Mulatsih, “The effect of village income on village expenditure: A case study of belitung regency.” International Journal of Sustainable Development & Planning, vol. 19, no. 1, 2024.
[22] A. R. Razak, A. A. R. Fernandes, and N. I. Saifullah, “Moderation of village funds and mediation of agricultural sector growth on poverty in rural areas,” International Journal of Economics and Business Research, vol. 26, no. 4, pp. 463–483, 2023.
[23] I. Anggraini et al., “Islamic ethics and socioeconomic determinants of msme income in aceh tamiang: Capital and education as drivers of equitable growth,” Journal of Progressive Islamic Economics and Social Inquiry in Asia, vol. 1, no. 1, 2025.
[24] C. Rimailis; Silvia, Vivi; Seftarita, “How do the special autonomy fund, village fund, and zakat interact in reducing poverty in aceh province?” Technium Soc. Sci. J., vol. 59, p. 122, 2024.
[25] A. Jamal, M. Nasir, P. B. Syathi, and Fitriyani, “Developing village in the former conflict region of indonesia through social and economic inclusion: Evidence from aceh,” Cogent Social Sciences, vol. 9, no. 1, p. 2178521, 2023.
[26] N. Amelia, T. Utami, T. Purwanti, C. Nugrahani, A. N. Jati et al., “The role of economic growth in moderating the effect of local revenue and transfers on capital spending: A case from central java,” Review of Applied Accounting Research (RAAR), vol. 5, no. 2, pp. 94–109, 2025.
[27] L. Hakim and A. Hakim, “Institutional and infrastructural roles in fostering the advancement of micro, small, and medium enterprises at the village level in aceh province, indonesia,” Migration Letters, vol. 21, no. 4, pp. 57–78, 2024.
[28] M. I. Sufitrayati, M. Yunus, S. Abdullah et al., “The mediation of organizational commitment: Human resources competence and income sources on financial management performance (study on village government in aceh),” Journal of Hunan University Natural Sciences, vol. 50, no. 6, 2023.
[29] D. Herdiyana, H. Sugiyanto, N. Andriana et al., “Can village funds strengthen economic growth in indonesia?” INFO ARTHA, vol. 9, no. 2, pp. 112–122, 2025.
[30] T. Wahyono, A. Chan, and N. Karlina, “Maturity model of village owned enterprise (voe) as social business in indonesia: Comparative study of the voe in the tourism sector,” Journal of Ecohumanism, vol. 4, no. 1, pp. 2165–2174, 2025.
[31] D. Hidayati, A. Andriyansah, G. P. Cesna, A. Y. Fauzi, D. Apriliasari, and U. Rahardja, “Building efficient iot systems with edge computing integration,” International Journal of Cyber and IT Service Management (IJCITSM), vol. 4, no. 2, pp. 72–79, 2024.
[32] R. Gunawan, A. Zulyanto et al., “Analysis of rural poverty in bengkulu province indonesia.” International Journal of Economics (IJEC), vol. 4, no. 1, 2025.
[33] A. Damai and Y. Aprianti, “The impact of fiscal policy on the underprivileged population in indonesia,” Jurnal Perspektif Pembiayaan Dan Pembangunan Daerah, vol. 12, no. 3, pp. 321–342, 2024.
[34] S. Anwar, R. Yudaruddin, D. Naprida, B. R. Wibowo, and D. Lesmana, “Aids social expenditures, poverty and inequality in time of covid-19 pandemic in indonesia,” Planning Malaysia, vol. 22, 2024.
[35] M. Meliza and A. S. Ulum, “The role of institutional quality in moderating tax revenue, revenue-sharing funds from natural resources, and government expenditure on inclusive economic growth,” Jurnal Akuntansi dan Auditing Indonesia, 2025.
Authors
Copyright (c) 2026 Irham Iskandar, Ellen Dolan
This work is licensed under a Creative Commons Attribution 4.0 International License.
This journal permits and encourages authors to post items submitted to the journal on personal websites while providing bibliographic details that credit its publication in this journal.
Authors are permitted to post their work online in institutional/disciplinary repositories or on their own websites. Pre-print versions posted online should include a citation and link to the final published version in Journal of Librarianship and Scholarly Communication as soon as the issue is available; post-print versions (including the final publisher's PDF) should include a citation and link to the journal's website.