Alwi Alwi, M. Rimawan, Puji Muniarti, Hanifa Mutiah
This study aims to analyze the effectiveness of local own-source revenue (PAD) collection and describe the fiscal independence ratio of the Bima City Government during 2021-2025. A descriptive quantitative method was used, relying on secondary data from the Regional Financial and Asset Management Agency (BPKAD) of Bima City. The results show that the PAD effectiveness ratio improved from the "less effective" category in 2021 (79.78%) to the "effective" category in 2024 and 2025 (99.45% and 98.63%, respectively), reflecting improved tax administration, more realistic revenue targets, and intensification efforts on the swiftlet nest tax, entertainment tax, food and beverage tax, and parking retribution. In contrast, the fiscal independence ratio remained consistently in the "very low" category with an instructive relationship pattern throughout 2021-2025, ranging between 7.07% and 17.33%, indicating persistently high dependence on central and provincial transfer funds. The improvement in PAD effectiveness was not automatically followed by a significant increase in fiscal independence, since the growth of transfer funds far outpaced PAD growth. These findings imply that strengthening local fiscal independence requires strategies beyond improving PAD collection effectiveness, such as expanding the local tax base, developing local economic sectors, and optimizing regional asset management, so that PAD growth can keep pace with the growth of transfer funds over time.