Year: 2025 | Month: January | Volume: 12 | Issue: 1 | Pages: 84-100
DOI: https://doi.org/10.52403/ijrr.20250112
The Effect of Regional Original Revenue (PAD), General Allocation Fund (DAU), Specific Allocation Fund (DAK) and Capital Expenditure on the Level of Financial Independence of Regions with Economic Growth as a Moderating Variable in Regency/City Governments of Special and Exclusive Administrative Areas in 2018-2022
Wilda Hairah Tb1, Azhar Maksum2, Keulana Erwin3
1Department of Accounting, Faculty of Economic and Business, North Sumatera University, Medan, Indonesia
Corresponding Author: Wilda Hairah Tb
ABSTRACT
This study was conducted to examine and analyze the effect of local revenue, general allocation funds, specific allocation funds, and capital expenditures on the level of regional financial independence with economic growth as a moderating variable. The research method used is quantitative research with a causality approach. The data used are secondary data from budget realization reports sourced from the DJPK and BPS portals. The sampling technique in the study was purposive sampling with a sample size of 44 districts/cities in 2018-2022. The data analysis technique used was panel data regression analysis using Eviews software. The results of the study indicate that local revenue has a positive effect on the level of regional financial independence. General allocation funds, Specific allocation funds and capital expenditures have a negative effect on the level of regional financial independence. Economic growth is able to moderate the effect of local revenue and general allocation funds on the level of regional financial independence. Meanwhile, economic growth is unable to moderate the effect of Specific allocation funds and capital expenditures on the level of regional financial independence.
Keywords: Level of regional financial independence, Regional Original Income, General Allocation Fund, Special Allocation Fund, Capital Expenditure, Economic Growth.
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