Analysis of the Role of General Allocation Funds (DAU) on Regional Government Financial Performance

Analysis of the Role of General Allocation Funds (DAU) on Regional Government Financial Performance

Nathasya Aurelia Puspitasari

Analysis of the Role of General Allocation Funds (DAU) on Regional Government Financial Performance

This study aims to analyze the role of General Allocation Funds (DAU) in influencing the financial performance of regional governments. As one of the main sources of intergovernmental transfers in Indonesia, the DAU is designed to assist regional governments in financing their expenditures and achieving fiscal balance. The research adopts a quantitative approach using secondary data from regional budget reports over a five-year period. Financial performance is measured through indicators such as expenditure realization, budget efficiency, and fiscal independence. The results of the analysis indicate that the DAU has a significant impact on financial performance, particularly in regions with limited local revenue sources. However, an overreliance on DAU may hinder the motivation of regional governments to optimize their own-source revenues. The study suggests that while DAU is crucial in supporting fiscal needs, local governments should also focus on strengthening local revenue management to achieve sustainable fiscal performance.

2025/06/20

https://insyma.org/proceedings/files/articles/DONE_Nathasya Aurelia Puspitasari.pdf

https://insyma.org/proceedings/items/show/478

General Allocation Funds, Regional Government, Financial Performance, Fiscal Independence, Budget Efficiency, Local Revenue, Intergovernmental Transfers

1035

1038

3047-857X

Proceedings of the International Symposium on Management (Volume 21, 2024)

22

Fakultas Bisnis dan Ekonomika, Universitas Surabaya

Nathasya Aurelia Puspitasari

Nonni Yap

Duwi Riningsi

Kartika Yuliari

166

Nathasya Aurelia Puspitasari, Nonni Yap, Duwi Riningsi, Kartika Yuliari