<![CDATA[The policy regarding regional autonomy has been declared by the Government of Indonesia through legislation namely Republic of Indonesia Law Number 32 of 2004 concerning Regional Government and Republic of Indonesia Law Number 33 of 2004 concerning Financial Balance between Central and Regional Governments. In the Act, the authority of regional autonomy is so that regions can carry out development in all fields, especially for the construction of public facilities and infrastructure. Localgovernments are given greater authority to be able to manage and manage their own regions, one of which is demanded to be more independent in managing regional finances. Central Java Province which has 35 regencies / cities which are divided into 6 ex-residency areas namely: Surakarta, Semarang, Pati, Pekalongan, Banyumas and Kedu. Ex Surakarta Residency consists of 7 cities / regencies namely: Surakarta, Boyolali, Sukoharjo, Karanganyar, Wonogiri, Sragen and Klaten. The City / Regency prepares the Regional Expenditure Budget every year to fund each program and activity that has been set. APBD consists of components of income, expenditure and financing. Regional Revenues consist of Local Revenue, Balancing Funds and Other Regional Revenues. Regional Expenditures consist of Direct Expenditures and Indirect Expenditures and Regional Financing consisting of financing revenues andfinancing expenditures. Therefore this study aims to prove empirically the effect of Balancing Funds and Regional Original Revenues and on Regional Expenditures in Cities / Districts in the former Surakarta Residency in Central Java Province. This study used a sample of 7 cities / regencies in the former Surakarta residency of Central Java Province that were sourced from the Realization of Regional Revenues and Expenditures Reports from 2012 to 2016. The methods and tools used in this study were multiple linear regression.The results of this study indicate that Balancing Funds, especially General Allocation Funds and Regional Original Revenues have a significant influence on regional expenditure allocations. If seen further, the most dominant level of dependence on regional expenditure allocation is the General Allocation Fund and Regional Original Revenue then Special Allocation Funds and Revenue Sharing Funds.Keywords: Balancing Funds, Regional Original Income and Regional Expenditure]]>
