FLYPAPER EFFECT PADA DANA ALOKASI UMUM DAN PENDAPATAN ASLI DAERAH TERHADAP BELANJA DAERAH PADA KOTA DAN KABUPATEN DI PROPINSI KALIMANTAN SELATAN

Abstract

This research aims to give empirical evidence on the effects of the regional original income (PAD/Pendapatan Asli Daerah) and the general allocation fund (DAU/Dana Alokasi Umum), both simultaneously and partially, to the regional expenditure (BD/Belanja Daerah) of the city and district government in the South Kalimantan province along with the flypaper effect that follows it. Secondary data are used in this research, including the regional original income, the general allocation fund, and the regional expenditure data in the quarterly regional budget realization report, both in the city and district level in South Kalimantan province in year 2010. The model that was used to analyze the data or to test the hypotheses is the Multiple Linear Regression model. According to the research results, it can be concluded that the regional original income and the general allocation fund are simultaneously and significantly affecting the regional expenditure in the cities in the South Kalimantan province. Moreover, when the test was held partially, it is known that each of those factors still has significant impacts on the regional expenditure in the same cities. It is also known that in the 2010 regional budget realization report, the effects that the regional original income has on the regional expenditure are bigger than what the general allocation fund has. With this result, it can be concluded that flypaper effect did not happen on the regional finance of the city and district government in South Kalimantan province in 2010.