PENGARUH KINERJA KEUANGAN PEMERINTAH DAERAH TERHADAP INDEKS PEMBANGUNAN MANUSIA PADA KABUPATEN ATAU KOTA DI PROVINSI JAWA TIMUR

Abstract

This research airned to examine the effect of financial performance, especially; Fiscal Decentralization Level, Local Government of Financial Independence ratio of Local-owned Source Revenue on Human Development Index. The population was 38 district/cities in East Java province which consist of some district and 9 cities during 2016-2018. Moreover, the sample was taken from data of budget realization report and Human Development Index of district/city in East Java Province. Furthermore, the data collection technique used purposive sampling. Additionally, the data were secondary. In addition, the data analysis technique used multiple linear regression with SPSS (Statistical Product and Service Solution) 22. The research result concluded Fiscal Decentralization Level had significant effect on Human Development Index. On the other hand, local Government of Financial Independence ratio had related but insignificant effect on Human Development Index. Meanwhile, effectiveness ratio of Local-owned Source Revenue had not related and insignificant effect on Human Development Index.
Keywords: decentralization level, effectiveness PAD, human development index.