<![CDATA[This study aims to analyze the relationship between the General Allocation Fund and regional fiscal independence in the context of regional autonomy in Indonesia. The General Allocation Fund is the main transfer fund from the central government to regional governments, serving to support the equalization of fiscal capacity among regions. However, a high dependency on the General Allocation Fund may indicate low fiscal independence and weaken the regions’ motivation to optimize their Own-Source Revenue. This research uses a qualitative approach with a descriptive method. The results show that the General Allocation Fund is allocated based on the needs and fiscal capacity of each region using the principle of equity, so regions with large populations, vast areas, and geographical challenges receive larger allocations. Although regional autonomy grants the authority to manage finances independently and encourages the increase of Own-Source Revenue, most regions are still heavily dependent on transfers from the central government, with the contribution of Own-Source Revenue to total regional income still below 30 percent. This dependency hampers regional initiatives to develop local economic potential and leads to inconsistent development planning. Therefore, a balanced role between the central and regional governments is crucial to ensure equitable and sustainable national development. The General Allocation Fund should function as an instrument to encourage regions to enhance fiscal independence while ensuring effective use of funds through proper oversight, in order to reduce interregional disparities and support fair and sustainable development.]]>
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