Analysis Of The Influence Of Regional Financial Performance On Economic Growth 2010-2022 (Case Study Of Regions Receiving Special Funds And Special Autonomy Funds In Indonesia)

Economic growth is the main indicator that directly reflects the economic development conditions of a region. Economic growth can be seen through the performance of regional financial management. To assess regional financial performance, you can carry out financial ratio analysis of regional government financial reports, used to determine the regional ability to increase income, regional independence in financing its own regional activities, and the effectiveness of regional finances in preparing and realizing PAD budget targets. This research aims to determine the influence of regional financial capacity, regional financial independence, and regional financial effectiveness on economic growth in regions receiving special funds and special autonomy funds in Indonesia in 2010-2022. The research method used in this research is a quantitative method with secondary data, namely data from the Budget Realization Report and GRDP in the Provinces of DIY, Aceh, Papua and West Papua for 2010-2022. Data collection comes from secondary data through the DJPK Ministry of Finance and BPS websites. The data analysis method used is panel data regression. The results of the research show that regional financial capacity has a positive and significant effect on economic growth. Regional financial independence has a negative and significant effect on economic growth. Regional financial effectiveness has a negative and insignificant effect on economic growth. Regional governments need to make efforts to increase revenue by optimizing the potential of each region so that it can increase the capability, independence and effectiveness of regional finances.