PENGARUH PENDAPATAN ASLI DAERAH (PAD) DAN DANA ALOKASI UMUM (DAU) TERHADAP BELANJA DAERAH PADA PEMERINTAH KOTA DI SUMATERA SELATAN

The objective of this research is to examine the effect of local own revenue and intergovernmental transfer to region government expense. Independent variables which are used in this research are local own revenue and intergovernmental transfer, and dependent variable is region government expense.This research is committed with 4 regency/ city as a sample which is Palembang, Prabumulih, Lubuk Linggau and Pagaralam. This research is done for 2009 – 2013 period. The data are taken from the website Financial Department of The Republic Indonesia (www.djpkpd.go.id).The data which is analyzed in this research are collected trough the region budget of Revenue and Expense (APBD). The instrument that used result is a multiple regression.Result of this study indicates that the PAD and DAU have a significant impact on regional expense. When viewed more deeply, the rate dependence of region government expense more dominant Intergovernmental Transfer (DAU) than Local Own Revenue (PAD)