PENGARUH PENDAPATAN ASLI DAERAH TERHADAP BELANJA DAERAH (STUDI KASUS KABUPATEN PEKALONGAN DAN KABUPATEN BATANG)

The decree of Minister for Internal Affairs number 29 Year 2002 gave more freedom and opportunity to regional govemments to conduct liscal improvisation and diversification in order to improve financing resources to support the acceleration process of regional development comprehensively. The budget must be used effectively and reported transparently so that it can be used as the indicator of work performance. Thus, the socicty knows how much budget allocated can support the process of society welfare improvement. The research is aimed to find out the influence of local income toward local expenditure and the difference between local income and local expenditure between Pekalongan and Batang regency using purposive sampling technique. The classical assumption technique was used to exarnine whether regression model is eligible or not, while linear regression test and statistical test of Independent Sample T Test used Mann 'Whitney u test model. The finding shows that (I) the local income does not have significant influence toward the local expenditure, (2) there is no difference on local income betweeu Pekalongan and Bataug regency, and (3) there is no difference on local expenditure between Pekalongan and Batang expenditure. Thus, the hypotheses proposed in the research are not proven.