PENGARUH DANA ALOKASI UMUM (DAU) DAN PENDAPATAN ASLI DAERAH (PAD) TERHADAP BELANJA DAERAH DI KABUPATEN PURWOREJO

Abstract

The implementation of the regional autonomy policy is supported by the financial balance
between the central government and regional governments as stated in Law No. 33 of 2004
concerning Financial Balance between Central and Regional Governments. In the Act, what is
meant by the balance between the central and regional governments is the existence of a
government financing system, which includes the financial division between the central and
regional governments and regional distribution in a proportional, democratic, fair and transparent
manner by taking into account the potential, conditions and needs of each area.
Equalization of inter-regional financial capabilities is intended to reduce capacity
inequality between regions through the application of formulas that take into account regional
needs and potential through the General Allocation Fund (DAU). In the implementation of regional
autonomy Regional Original Revenue (PAD) is also needed to provide flexibility to the regions in
seeking funding as a manifestation of the principle of decentralization, as well as for the welfare of
the people in the region, given the source of regional income received also has limitations.
In carrying out efforts to increase the implementation of regional autonomy and the success
of the decentralization system, it is necessary to analyze the General Allocation Fund (DAU) and
Regional Original Revenue (PAD) on Regional Expenditures. This study aims to analyze the
dominant income factors for regional spending, especially in Purworejo Regency for the period
2010 to 2017.
 The results obtained are stated by the coefficient of determination value 0.966, which means
that the general allocation fund and the original revenue area have a positive and significant effect
on the regional expenditure with the contribution value of 96.6%. Partially, the general allocation
fund has no effect on the regional expenditure and the original revenue of the region has an effect
on the regional expenditure with a significance value of 0.006. Simultaneously, general allocation
fund and local own revenue have positive and significant influence to local expenditure in
Purworejo Regency with significance value 0.000.