Abstract

This study aims to examine the effects of local revenue and balancingfunds consisting of general allocation funds, special allocation funds andrevenue-sharing funds on the human development index of districtgovernments/ city in Central Java. The level of Human DevelopmentIndex in Central Java from year to year has fluctuated changes inthe increase and including the medium category.The research methodused in this is quantitative research using multiple linear regressionanalysis tools. The sample used in this study is the district governmentfinancial statements in Central Java during 2015-2016 whichamounted to 70. The result of the research shows that the originalincome of the region influences the human development index. Whilegeneral allocation funds, special allocation funds and profit-sharingfunds have no effect on the human development index. This indicatesthat the fulfillment of education, health and poverty eradication needsin Central Java can be met from the local revenue in each districtgovernmentKeywords: Local original revenue, general allocation fund, special allocation fund, profit-sharing fund, human development indexJEL Classification: H61, H77

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