Budget Bias in District and City Goverments in Central Java Province

This research is aimed to know the effect of budget ratcheting in local revenue and balancing funds. This study also examines how the effects of budget ratcheting in the relationship between regional income and regional expenditure. This research is categorized as causative research and data analysis tests such as the t-test, F-test, and determination test. The population in this study are all districts and cities in the Province of Central Java which are 29 districts and 6 cities. Sampling in this study was conducted using total sampling. The data in this study were sourced from the report on the realization of regional revenue and expenditure budgets for district and city government in the Province of Central Java in 2016-2018. The results of this study indicate that the budget ratcheting effect in local revenue and balance funds. The results of this study also show that local revenue affects local spending and budget ratcheting to weakens the relationship between the two