PENGARUH DANA ALOKASI UMUM (DAU) DAN PENDAPATAN ASLI DAERAH (PAD) TERHADAP PREDIKSI BELANJA DAERAH

The aim of this research is to explain the influence of the region revenue to the region exspense in the east java and the effect of flypaper effect of the allocated fund for public and local revenue to the local expenditure. Date of this research are funds allocated for public, original of region revenue,and Local expenditures of the 38 distric/ cities in East Java at BPS from 2003-2007. Were selected by using method of sensus. Hipotesis test is done with linear model regression and the doule linear model regression. The result of the examination show the original of funds allocated for public and original of region revenue have an positif effect and significant of predictif of the local expenditure. The funds that is used for paying the local expenditure was mostly taken from the central government instead of the local government.