65 number of Local Government Expenditures that will be issued by the
Provincial Governments, Districts Cities. b.
The second hypothesis states that the General Allocation Funds DAU was significantly positive for Local Government
Expenditures BD. Statistical test results show a significant level of 0.000 General Allocation Funds is less than the significant level of
0.05 in order to prove that the DAU significant effect on Local Government Expenditures. The results are consistent with research
Anggraeni and Suhardjo 2010 which states affect the General Fund Expenditure Allocation District town in Central Java Province. If
there is an increase in the number of DAU, there will be an increase also in the number of Local Government Expenditures that will be
issued by the Provincial Government, District City. Mangkukusumo 2012 stated that the General Allocation
Funds have a significant positive effect on the allocation of Local Government Expenditures. District city that has a high DAU, the
spending as higher Local Government Expenditure as well. Statement of Abdul Halim 2009 states that the General
Allocation Funds are general transfers from the central government to local governments to solving horizontal inequalities problem, the
main objective is equalization financial capabilities among local government provinces, districts and cities. In accordance with the
above results, the higher the General Allocation Funds obtained from
66 the Local Government Central Government, the higher is the
expenditure allocation area.
d. Hypothesis Test Result
No Hypothesis
The Result
1 Original Local Government Revenues PAD
has no a significant effect on Local Government Expenditures.
ACCEPTED
2 That the General Allocation Funds DAU
have a significant positive effect to Local Government Expenditures.
ACCEPTED
3 Original Local Government Revenues PAD
and the General Allocation Funds DAU simultaneously have a implies significant
effect to Local Government Expenditures. ACCEPTED
67
CHAPTER V CONCLUSIONS AND RECOMENDATIONS
A. Conclusions
It has been described in the previous chapters that this research analyze have effects on the General Allocation Funds DAU, the Original
Local Government Revenues PAD and Local Government Expenditures in 10 Districtscities in Lampung province during 2008 until 2010. Local
Government Expenditures are local government expenditures within a budget period included in the Local Government Revenue and Expenditure Budget
APBD. 1.
This research founds that local government revenues PAD has no a significant effect to Local Government Expenditures. The higher the
PAD in Local Government Revenue and Expenditure Budget APBD the allocation of local government expenditures is higher as well. The
General Allocation Funds DAU has a significant effect on the Local Expenditures BD. Local Government Revenue and Expenditure budget
APBD Local Government Revenue and Expenditure budget APBD with higher DAU will have higher Local Government Expenditures
BD. This research has discovered that Original Local Government Revenues PAD and the General Allocation Funds DAU have a
simultaneously impact on Local Government Expenditures BD.
68 2.
Flypaper effects were found in 10 districts cities in the Lampung province by analyzing the composition of the Local Government
Revenue and Expenditure Budget APBD between the PAD, and the Balanced Budget.
B. Recommendations
1. Local Government
Since there could be found a Flypaper effect in 10 districts cities in the Lampung province by analyzing the composition of the
Local Government Revenue and Expenditure Budget APBD between the PAD, and the Balanced Budget. The basic function of Balanced
Budget serves as a transfer of funds from the central government from the state budget to cover the fiscal gap, but in fact it has become the
main source of local government revenues. It is suggested that local governments should get enabled to identify area potential in order to find
their opportunities for revenues, they are able to exploit. a.
Improving PAD strategy Original
Local Government
Revenues PAD
are spearheading the organization of local governments, various
government activities both principal and co-administration tasks must be balanced by the sufficient amount of PAD as the locomotive
for local government programs. In order to the presence of PAD the amount of local government expenditures need to not excess the
