TOWARDS FISCAL INDEPENDENCE: STRATEGIES FOR ADDRESSING BUDGET DEFICIT IN JAMBI PROVINCE

Abstract

This study explores strategic approaches to address the budget deficit in Jambi Province, Indonesia, with a focus on achieving fiscal independence. The province has faced persistent fiscal challenges, including a 7.27% deficit in 2023, largely due to its reliance on central government transfers and limited local revenue generation. Using a qualitative method, this research analyzes secondary data from government reports, regulations, and academic literature through descriptive analysis. The findings highlight three key strategies: optimizing the management of balance funds (Dana Perimbangan), securing and effectively managing assistance task funds (Dana Tugas Pembantuan), and increasing local own-source revenue (PAD). While Dana Perimbangan has shown positive realization rates, the underutilization of DAK remains a concern. The pursuit of Dana Tugas Pembantuan requires strong governance and accountability, while increasing PAD demands innovation in revenue collection and diversification. These strategies, if implemented effectively, can help Jambi overcome its budget deficit and move toward sustainable fiscal autonomy. The study concludes that fiscal independence is not only a financial goal but a governance priority that requires institutional strengthening, strategic planning, and inclusive policy-making to ensure resilient and equitable regional development.