Factors Influencing Fiscal Autonomy of Local Government: A Case Study of Sub-district Municipality in Sakon Nakhon Province

Abstract

The purpose of this research was to assess the factors influencing the autonomy of the fiscal administration of local government through a case study of 65 sub-district municipalities in Sakon Nakhon Province. The informants consisted of the Chief Executive, Chief Administrator and Division Director of Finance of each sub-district municipality totaling 195 people. The tools used for collecting data were a questionnaire survey and interview forms. Statistics used for data analysis comprised multiple regression analysis (Stepwise). Results indicated that organizational and economic factors influenced the fiscal autonomy of local government with statistical significance at the level of 0.05. This concurred with the research hypothesis of an influence on the fiscal autonomy of local government at 33.80 percent. Therefore, laws should be considered to find new means of income and reduce reliance on local governments. Improvements in revenue collection and expenditure by local governments should be supported while encouraging civil society to reduce tax avoidance by its citizens. Local governments should support personnel and finance staff with training to improve their skills and knowledge of updated information systems and program applications regarding taxation to increase revenue collection efficiency.