ANALISIS FLYPAPER EFFECT PADA BELANJA DAERAH KABUPATEN/KOTA DI SUMATERA SELATAN

The aims of local autonomy is to achieve local independence funding, sothat the areas can organize themselves without any central governmentinterference. The direct implications for the implementation of the aboveis needed great for adequate funding. Local government's main fundingsource, comes from the PAD, which is used to finance expenditures anddevelopment. But in some of the current year funding sources not onlyfrom the PAD. Local governments also get help from central governmenttransfers such as Equalization Fund in this case is Block Grant Aid(DAU). In the course of the central government transfers actuallybecome a disincentive for increased regional funding. Regions becomemore dependent on central government transfers rather than optimizetheir own revenues (PAD). There are has indications of asymmetricbehavior in response to the transfer of central government.This research has the objective to provide empirical evidence or did nothappen flypaper effect in the Block Grant Aid and the Regional RealIncome to Regional Expenditure district/city in South Sumatra. Theanalyzed data obtained from the reports of the Real Budget and RegionalIncome. The results show that the coefficient of DAU and the coefficientof PAD when tested simultaneously (simultaneous) has effect on regionalexpenditure. However, when tested separately (partial) results indicatethat coefficient of DAU is greater than coefficient of PAD, it means thereis flypaper effect in the Expenditure Area district/ city in South Sumatra.These results are only based on statistical tests and can not be used tomeasure of the performance of local governments at district / city inSouth Sumatra, as it still needs testing through next research.Keywords: flypaper effect, Block Grant Aid, Regional Real Income, RegionalExpenditur