<![CDATA[The purpose of this study is to determine the influence of the General Allocation Fund (DAU), Special Allocation Fund (DAK), Tax Revenue Sharing Fund, and Natural Resources Revenue Sharing Fund on the financial performance of local governments. This study uses a quantitative approach with an associative design, with secondary data obtained from the Directorate General of Financial Balance (DJPK) of the Ministry of Finance through https://djpk.kemenkeu.go.id, as well as a sample of 508 districts/cities in Indonesia for the 2023–2024 period. The analysis techniques used were multiple linear regression and Moderated Regression Analysis (MRA) using the SPSS 26 program. The results of the study showed that the General Allocation Fund (DAU) and the Tax Revenue Sharing Fund had a positive and significant effect on the financial performance of local governments, while the Special Allocation Fund (DAK) and the Natural Resources Revenue Sharing Fund had no significant effect. Spending efficiency has a significant effect on financial performance, but it is unable to moderate the relationship between transfer funds and financial performance, so the influence of independent variables occurs directly without a moderation effect. Simultaneously, all variables have a significant effect on the financial performance of local governments. Thus, regional financial performance is more influenced by DAU, the Tax Revenue Sharing Fund, and the effectiveness of expenditure management, without the role of spending efficiency moderation.]]>
