Fiscal Decentralization and Sharia-Based Financial Governance in Local Governments: Evidence from Padang Lawas
Keywords:
Fiscal Decentralization; Public Financial Governance; Sharia-Based Finance; Local Government Accountability; Systematic Literature ReviewAbstract
Fiscal decentralization is a key policy in the reform of local government governance aimed at improving efficiency, accountability, and the quality of public financial management. However, the success of fiscal decentralization is highly dependent on the financial governance system implemented by local governments. This study aims to systematically examine the development of the literature on fiscal decentralization and sharia-based financial governance in local governments. The research employs a structured literature review approach using the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) framework. The screening process resulted in 35 reputable articles published between 2020 and 2025. Bibliometric analysis was conducted using VOSviewer software to map research clusters, inter-topic relationships, and emerging research trends. The findings indicate that the literature on fiscal decentralization is still predominantly dominated by conventional public finance approaches that emphasize efficiency and local fiscal performance. Nevertheless, increasing attention has been paid to issues of governance, accountability, and transparency. Sharia-based financial governance emerges as a relatively limited cluster; however, it demonstrates a strong association with ethical values and public legitimacy. This study highlights the need to integrate sharia principles into local public financial governance to support accountable, equitable, and sustainable public financial management.
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