PENGARUH PENDAPATAN ASLI DAERAH DAN BELANJA DAERAH TERHADAP KINERJA KEUANGAN DAERAH

Abstract

Local financial performance is a level of achievement from the result of financial performance consisting of local budget and the realization; in order to find out local competence in managing finance. This research aimed to examine the effect of Local-owned Source Revenue and local expenditure on local financial performance in districts/cities of East Java province. Moreover, the research was quantitative. The data collection technique used census sampling. In line with that, there were 114 samples, consisting of 29 districts and 9 cities in East Java during 2019-2021. Furthermore, the data were in form of the result report of the auditing for the Local Financial Statement Report and taken from BPK Representative of East Java. The data analysis technique used multiple linear regression. The result concluded that Local-owned Source Revenue had a positive effect on local financial performance in districts/cities of East Java province. However, local expenditure had a negative effect on local financial performance in districts/cities of East Java province.