BRIDGING FISCAL DEPENDENCY AND AUTONOMY: STRATEGIC SOLUTIONS FOR REGIONAL FINANCIAL MANAGEMENT IN GORONTALO PROVINCE
This study examines the optimization of regional financial management to achieve fiscal independence in Gorontalo Province, which is characterized by a low fiscal independence index and heavy reliance on central government transfers. The research aims to identify systemic inefficiencies in financial management and propose a comprehensive framework to address these challenges. By employing a qualitative approach, the study collects primary data through interviews with key stakeholders and secondary data from official reports and policy documents. The findings reveal persistent gaps in planning, budgeting, implementation, and evaluation processes. These inefficiencies are driven by unrealistic revenue projections, delays in legislative approval, inconsistent regulatory guidance, and insufficient local revenue mobilization. A tailored financial management framework is proposed, emphasizing evidence-based planning, streamlined implementation, standardized reporting, and performance evaluation. This framework aligns with principles of good governance and New Public Management, fostering transparency, accountability, and fiscal discipline. The study concludes that systemic reforms are essential to reducing Gorontalo’s fiscal dependency and enhancing its financial autonomy. By implementing the proposed framework, the province can improve resource utilization and governance capacity. The findings contribute to the broader discourse on regional financial management and provide a model for application in other regions facing similar fiscal challenges.
Fiscal Independence, Regional Financial Management, Good Governance.