The Influence of Special Allocation Fund DAK to the Local

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2. The Influence of General Allocation Fund DAU to the Local

Government Expenditure According to Adam,et al 2013 the General Allocation Fund DAU shows influence on direct expenditure allocation in Southeast Sulawesi. And Mulyadi et al 2010 the result showed General Allocation Fund DAU influence significant to the Local Government Expenditure in Bengkulu province. Rinzani et al 2011 the result showed General Allocation Fund influence to the Local Government Expenditure in South Kalimantan. Djalil 2014: 145 suggests the lower the life expectancy index, education index, and a decent standard of living index, the declining DAU obtained an area. Given the current fiscal needs to perform a public service in local government getting bigger, then the local government should optimize local revenue sources as embodiments of fiscal independence. Because if the General Allocation Fund DAU has decreased, it can cause a decrease in Local Government Expenditure BD. This indicates that the local government expenditure behavior primarily of Local Government Expenditure BD influenced by the DAU.

3. The Influence of Special Allocation Fund DAK to the Local

Government Expenditure Research conducted by Rivai 2013 showed that the Special Allocation Fund DAK influence an increasing number of Local 26 Governemnt Expenditure BD in Gorontalo province. And according to Rizani et al 2013, the result showed Special Allocation Fund significantly influence to the Local Government Expenditure on districtscities in South Kalimantan. And according to Siregar 2013 the result showed Special Allocation Fund influence significantly on the Local Government Expenditure BD in Jambi Province. Fund balance is the embodiment of a financial relationship between central and local government. One of the fund balance is the Special Allocation Fund, DAK is sourced from the state budget funds allocated to local governments to finance specific activities is a matter of local and national priorities. DAK goal to reduce the burden of the cost of specific activities that must be borne by the local government. Utilization DAK investment activities directed to the development, procurement, improvement, improvement of physical infrastructure of public services with long economic lives. With the use of DAK should be directed to these activities are expected to improve public service realized in Local Government Expenditure BD. This indicates that the local government expenditure behavior primarily of Local Government Expenditure BD influenced by the DAK. 27 Table 2.1 Previous Research Table No. Author Year Thesis Title Variables Conclusions 1 Adam, Umar Sosilo 2013 Influence of Original Local Government Revenue PAD and General Allocation Fund DAU on Local Government Expenditure in districtscities of Southeast Sulawesi 1. General Allocation Funds DAU 2. Original Local Government Revenues PAD 3. Local government expenditure Budget The influence Original Local Government does not have influence on Direct expenditure Allocation in Southeast Sulawesi. It is defined that Original Local Government Revenue PAD has not contributed on Direct Expenditure in Southeast Sulawesi. And General Allocation Fund DAU shows influence on direct expenditure allocation in Southeast Sulawesi. 2 Sorongan 2013 The influence of General Allocation Funds DAU and Original Local Government Revenues PAD On Local government expenditure Budget in South Minahasa 1. General Allocation Funds DAU 2. Original Local Government Revenues PAD 3. Local government expenditure Budget The results show that the relationship of the DAU and Original Local Government Revenue has no influence to the local government expenditures. Besides Local Taxes and Levies asa major source of revenue corresponding analysis of the relationship of the Regional Tax on Expenditure PAD is very strong shows local taxes provide relationship to the PAD inregional local 28 No. Author Year Thesis Title Variables Conclusions local government expenditure activities 3 Rivai 2013 The influence of General Allocation Funds DAU, Special Allocation Fund DAK and Original Local Government Revenues PAD On Local government expenditure Budget in Gorontalo Province 1. General Allocation Funds DAU 2. Special Allocation Fund DAK 3. Original Local Government Revenues PAD 4. Local government expenditure Budget Original Local Government Revenue PAD, General Allocation Fund DAU and Special Allocation Fund DAK influence an increasing number of Local Governemnt Expenditure in Gorontalo province. Simultaneously Original Local Government Revenue, General Allocation Fund and Special Allocation Fund had a positive influence toward the Capital Expenditure Allocation. 4 Mulyadi, Alfansi and Benardin 2010 The analysis of effect General allocation Fund and Original Local Government Revenue to Local Government Expenditure in Bengkulu 1. General Allocation Fund 2. Original Local Government Revenue 3. Local Governemnt Expenditure The General Allocation Fund and Original Local Government Revenue influce signicicant to Local Government Expenditure in Bengkulu. 5 Rizani, Fatiah, Rasidah, Rawintan, and Utami 2011 The influence of Economic Growth, Original Local Government Revenue, General allocation Fund, Special allocation Fund in South 1. Economic Growth 2. Original Local Government Revenue 3. General Allocation Fund Partialy Economic Growth, Original Local Government Revenue, General Allocation Fund, and Special Allocation Fund significantly 29

C. Theoritical Framework