Abstract
This study aims to determine the effect of Regional Financial Independence and Government Expenditure on Poverty and Economic Growth in Kalimantan Island in 2012. The data used in this study is secondary data in the form of Regional Financial Independence, Government Expenditures, Poverty Levels, and Economic Growth in the Province Central Kalimantan, West Kalimantan, East Kalimantan and South Kalimantan. The analytical method used in this study is multiple regression analysis. The results of the first model analysis state that regional financial independence has a negative and insignificant effect on poverty, and government spending has a significant effect on poverty. While the results of the second model analysis are regional financial independence and government spending have a significant effect on economic growth.
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