ANALISIS FLYPAPER EFFECT DANA TRANSFER DAN PAD TERHADAP BELANJADAERAH KABUPATEN/KOTA DI JAWA TIMUR

Abstract

This study examines the level of dependence (flypaper effect) and the
effect of regional transfer funds, in this case the General Allocation
Fund (DAU), Special Allocation Funds (DAK) and Regional Original
Income (PAD) for Regional Expenditures. While the location of the
study was conducted in nine cities and 29 districts in the East Java
region of the 2010-2017 series.
Based on the t test (partial) the regional transfer funds consisting of the
General Allocation Fund (DAU), Special Allocation Fund (DAK) and
Regional Original Revenue (PAD) have a positive and significant effect
on regional expenditure (Regional Expenditure). This means that the
existence of DAU, DAK and PAD in each city and district contributes
to the ability to increase regional spending,
However, in the analysis of the dependence of the budget from 38
districts and cities, only four cities / districts did not show symptoms of
the fly paper effect, namely Malang City, Surabaya City, Tulungagung
City and Jember. While 34 cities / regencies show symptoms of
budgetary dependence from central transfer funds or symptoms of
flypaper effects. This symptom of the flypaper effect is caused by the
accumulation of regional budget in 34 cities and districts, the
composition of the contribution of PAD is lower than DAU and DAK.
Suggestions from researchers for 34 cities / regencies in East Java to
optimize development transfer fund assistance in accordance with Law
No. 33/2004 in order to improve financial capacity and regional
independence in development spending. The way the Regional
Government / District Government that experiences the symptoms of
the flypaper effect allocates transfer funds is oriented towards
increasing and developing economic potential in their respective
regions,
Keywords: Flypapaer Effect, Transfer Funds, Regional Original Income and
Regional Expenditures