Analisis Pengaruh Pendapatan Asli Daerah dan Dana Alokasi Umum terhadap Belanja Daerah di Kota Medan Periode 1999-2012

Abstract

This study aims to investigate and analyze the effect of regional revenue (PAD) and the general allocation fund (DAU) for regional expenditures in Medan City. The data that is used in this study is a secondary data in time series form of Medan City budget realization reports in the 1999-2012 period. Variables consisted of a dependent variable, that is BD and two independent variables, those are DAU and PAD. The result of this study indicated that regional expenditure in Medan City is more affected by DAU than PAD. This condition shows that there is an “flypaper effect” in local government finance. The analysis also showed that 𝐷����𝐴����𝑈����𝑡����−1 and 𝑃����𝐴����𝐷����𝑡����−1 simultaneously affect the 𝐵����𝐷����𝑡����.