THE EFFECT OF REGIONAL ORIGINAL REVENUE AND BALANCING FUNDS ON REGIONAL EXPENDITURE AND THE OCCURRENCE OF THE FLYPAPER EFFECT ON THE KUPANG DISTRICT GOVERNMENT FISCAL YEAR 2019-2023
Abstract
This study aims to analyze the influence of Regional Original Income (PAD) and Balancing Funds on Regional Expenditures and explore the occurrence of the Flypaper Effect in the Kupang Regency Government during the 2019-2023 period. This type of research is quantitative research. The population in this study is the Kupang Regency APBD report for the 2019-2023 fiscal year and the sample used is the Kupang Regency LRA for 2019-2023. The data used are secondary data with documentation and literature study methods. The analysis method used is multiple linear regression with the help of SPSS software.
The results of the study indicate that partially, both PAD and Balancing Funds do not have a significant effect on Regional Expenditure as evidenced by a greater significant value (PAD 0.416 > 0.05 and Balancing Fund 0.423 > 0.05). Simultaneously, these two variables also do not have a significant effect on Regional Expenditure as evidenced by a greater significant value level (0.451 > 005). However, a Flypaper Effect phenomenon was found in Kupang Regency, where Balancing Funds have a greater effect than PAD on Regional Expenditure as evidenced by the regression coefficient value of Balancing Funds of 0.299 compared to PAD which is -2.546. This study suggests that the Kupang Regency Government evaluate the PAD management policy and optimize the use of Balancing Funds to increase the effectiveness of regional expenditure allocation
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