Study of Regional Expenditure Dependence on Fund Transfer; Case Studies South Kalimantan Province

Abstract

This research was conducted after taking into account the results of the implementation of regional autonomy and fiscal decentralization, local governments determine their own expenditure plans and find sources of revenue for their regions, but of concerns will further enlarge the gap between regions so that the government provides transfer funds to the regions through the General Allocation Fund, in its implementation It seems that the regions are dependent on these funds, considering that in implementation they can be used more easily, but in its implementation It seems that regions are increasingly dependent on these funds, considering that they can be used more easily in their implementation. Optimizing the implementation of regional development, the regions need sufficient funding sources for various activities that have an impact on the welfare of the community. The transfer funds in this study are general allocation funds because these funding sources are generally unconditional use and the aim is to equalize development between regions. The purpose of this study is to determine whether regional spending in the Regencies/ Cities of South Kalimantan Province depends on the source of regional funding (PAD) and transfer funds (DAU) current year or the previous year, and which variable most influences regional spending in the district / city in the south. Kalimantan Province. This study uses panel data covering 13 districts / cities in South Kalimantan and the observation period 2010 - 2018. Data analysis techniques using panel data regression, and using the Chow test and Hausman test to determine the best model. The results of the research reject the hypothesis of District / City Regional Expenditure in South Kalimantan Province depending on Regional Revenue and Allocation Funds in the previous year, accepting the hypothesis that the dominant variable influencing district / city regional spending in South Kalimantan Province is the General Allocation Fund. From the magnitude of the variable coefficient of PAD and DAU, the coefficient value of regional government funds or transfer funds on regional spending can be seen from the magnitude of the regional expenditure coefficient, the coefficient in the current year is greater than the previous year, and this regional expenditure is more influenced by the DAU in the year walk. Local governments in determining regional spending must be selective in determining programs and activities to be carried out, supervision is needed in the implementation of regional expenditures, not to allocate more for employee expenditure than to finance activities to improve the welfare of the community