PENGARUH KINERJA PENDAPATAN ASLI DAERAH BELANJA MODAL DAN BELANJA PEGAWAI TERHADAP TINGKAT KEMANDIRIAN KEUANGAN DAERAH

Abstract

This research aims to examine the influence of local revenue performance, capital expenditure, and personnel expenditure on the level of regional financial independence at the Regency / City in East Java Province.The population in this research was obtained by using Purposive Sampling method in Regency / City in East Java Province and based on predetermined criteria, the sample of 38 regencies / cities in East Java Province was obtained. The analysis method that been used is multiple linear regression analysis with using SPSS (Statistical Product and Service Solution) application tool. The results showed that the performance of local revenue had a positive influence on the level of regional financial independence, meaning that if the performance of local revenue is high then financial independence will also be high. Capital expenditures have no influence on the level of regional financial independence, meaning the allocation of improper capital spending targets and decreased quality of public services hence the regional financial independence decreased. Employee expenditures negatively influenced the level of regional financial independence, meaning that if the low employee spending will burden the financial stability of the region and financial independence to decline.
Keywords: Local own revenue performance, capital expenditure, employee expenditure, local financial independence level.