PENGARUH PENDAPATAN ASLI DAERAH (PAD), DANA ALOKASI UMUM (DAU), DANA ALOKASI KHUSUS (DAK) TERHADAP BELANJA DAERAH

Abstract

As the regional autonomy is applied, the local government’s has been given more opportunities to develop is potency. As the result, the government’s budget need to be increased. While, some factors are used to spend the budget which as follow: Local-Own source Revenue, General Allocation Grant, and Special Allocation Fund.This research aimed to find out the effect of Local-Own source Revenue, General Allocation Grant, and Special Allocation Fund on the Province Local Budget. Moreover, the population was province government in Indonesia. Furthermore, the data collection technique used saturated sampling. In line with, the sample was 34 provinces. In addition, the data analysis technique used multiple linear regression.The research result concluded Local-Own source Revenue had positive effect on the Province Local Budget. It meant, the higher level of Own-source Revenue, the more society wealthfare programs would be obtained. This made the local budget became higher. Likewise, General Allocation Grant had positive effect on the Province Local Budget. In the words, the local government had higher dependency on the state government aids in arranging the increase of its budget. On the other hand, Special Allocation Fund had negative effect on the Province Local Budget. This was caused as special needs were hardly to be predicted with general allocation formula. In line with, there was lack of good planning on its Special Allocation Fund.
Keywords: local-own source revenue, general allocation grant, and special allocation fund, province local budget