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Government Expenditure BD. α used for this research is 0.05 5
with assumption: 1. α 0,05 Ho is accepted
2. α 0,05 Ho is rejected
b. Partial Significance Test t- Test Partial Significance Test or t- test basically has purpose to
know how far and how much the influence independent variables toward dependent variables partially
Ghozali, 2013:98
. In this research, t- test is done to know the influence of Original Local
Government Revenue PAD General Allocation Fund DAU, and Special Allocation Fund DAK as independent variables towards
Local Government Expenditure BD as dependent variable.
Assumption used for this test are if the significance value of t more than α significance value α, then hypothesis is rejected but
if on contrary the significance value of t less than α significance
value α, so hypothesis is accepted. Level of significance α use in this research is 0.05 5.
E. Definition Of Operational Variable
1. Local Government Expenditures BD
Local Government Expenditures are government expenditures within a certain budget period one year. In order to facilitate the
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assessment of the reasonability of the costs of programs or activities, expenditures are summarized into expenditure groups, which consist of
indirect expenditures and direct spending Halim, 2009. Expenditures in this study can be ascertained from Local Government Expenditures in the
consolidated budget realization of districtcity governments in South Sumatera province from 2008 to 2013.
The allocation of expenditures consists of indirect expenditures and direct expenditures. Indirect expenditures are expenditures that do
not have a direct effect to the implementation of government programs and activities and are composed of personnel expenditures, interest
expenditures, subsidies, and grants, expenditures for social assistance, financial assistance expenditures and unexpected expenditures Puspita
Sari, 2010. The formula for calculating the allocation of indirect expenditures ABTL is the following:
ABTL = office expenditures + interest expenditures + subsidy expenditures + grant expenditures + social assistance + financial
assistance expenditures + unexpected expenditures
Direct
expenditures
are expenditures that have a direct effect to programs and activities that include government expenditures,
expenditures on goods and services and capital expenditures Puspita sari, 2010. The formula for calculating the allocation of direct
expenditures ABL is the following:
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ABL = office expenditures + goods and services expenditures + capital
expenditures.
BD = ABTL + ABL
LNBD = The amount of LNBD
2. Original Local Government Revenues PAD
According to Suparmoko 2012: 159 is a Original Local Government Revenue PAD of local government revenue sourced from
the local taxes, levies results, and the results were separated areas of wealth management, as well as other legitimate revenue. PAD in this study
can be ascertained from Local Government Expenditures in the realization of the consolidated government budget of 15 districtscities in South
Sumatera from 2008 to 2013. The total PAD is realization contained in the budget realization
report 2008 to 2013. Total Original Local Government Revenue includes local taxes, levies, local owned company results and the results of
management. LNPAD = The amount of LNPAD
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3. General Allocation Funds DAU
