Fiscal Policy Alignment and Regional Incentive Performance in the Macroeconomic Context of Pasaman Regency

Abstract

This study aims to analyze the degree of harmonization between regional fiscal policy, the realization of fiscal incentives, and macroeconomic indicators within the framework of fiscal decentralization in Pasaman Regency, with a focus on the alignment between fiscal policy and economic growth achievements, poverty levels, and public budget management. The method used is a qualitative descriptive method based on secondary data from Statistics Indonesia (BPS), the Directorate General of Taxes (DGT) of the Ministry of Finance, the Pasaman Regency Government, and other official sources, to understand the dynamics of fiscal policy in a complex socio-economic context. The analysis covers four main aspects: the structure of regional revenue and expenditure, fiscal incentives from the central government, regional macroeconomic indicators, and the level of fiscal independence. The results show moderate progress in regional economic stability, but harmonization between fiscal policy and macroeconomic indicators remains partial. Economic growth increased from 3.37% in 2021 to 4.41% in 2023, accompanied by a decrease in the poverty rate to 6.02% in 2025, but still faced with low optimization of Regional Original Income (PAD) and public spending efficiency. The Rp9.15 billion fiscal incentive in 2023 reflects administrative alignment with central government policies, although its impact on regional fiscal independence is limited. Therefore, optimization of productive spending, regional fiscal innovation, and strengthening of central-regional coordination are needed to ensure more effective and sustainable fiscal decentralization.