The Effect of Economic Growth and Locally Generated Revenue on Financial Independence on Regions in the Province of Bali

Abstract

____________________________________________________________________ The purposes of this research are to analyze the effect of economic growth on financial independence on regions in the Province of Bali, to analyze the effect of locally generated revenue toward financial independence on regions in the Province of Bali, to analyze the effect of economic growth and locally generated revenue on financial independence on regions in the Province of Bali, and to analyze each regions financial independence in the Province of Bali. Samples are collected using a purposive sampling method for the last 5 (five) years from each region. The results show that economic growth has positive significant effects on the financial independence of regions in the Province of Bali. The second result shows that locally generated revenue has a positive and significant effect on financial independence on regions in the Province of Bali. The third finding shows that economic growth and locally generated revenue simultaneously give a significant positive effect on financial independence on regions in the Province of Bali. In general, the financial independence of each region in the Province of Bali still depends on the central government. The study concludes from the low and very low ratio of districts/cities financial independence. Only region of Badung has high ratio on financial independence thus the region of Badung's locally generated revenue is able to fund its own expenditure in their duty to perform regional autonomy.