ANALISIS PENGARUH FLYPAPER EFFECT PADA DANA PERIMBANGAN DAN PENDAPATAN ASLI DAERAH TERHADAP BELANJA DAERAH DI PROVINSI SUMATERA UTARA

Abstract

Fiscal decentralization is a form of financial autonomy provided by the central government to local governments. The existence of a fund transfer for the regional government is funding in the implementation of government functions and carrying out the function of security while the source of income is expected to be from locally-generated revenue. But in reality, fiscal transfers are the primary source for local governments to finance local expenditures. The research used data from 2013-2018 and used the quantitative research method using the panel regression method. The result of this study indicates that of the three models used, total expenditure, education sector public expenditure, and health sector public expenditure, the flypaper effect occurs. This result has the effect that each increase in the balanced fund will encourage total expenditure, education sector public expenditure, and health sector public expenditure. The increase in public expenditure is expected to improve public services, which in turn can improve the welfare of the people in the districts and cities in the North Sumatra Province.