<![CDATA[Regional Financial Independence is an important indicator in fiscal decentralization, reflecting the ability of regions to finance regional expenditures without relying too much on transfers from the central government. Therefore, local governments must continue to optimize the management of regional financial resources to create good Regional Financial Independence. This study aims to determine the effect of Regional Taxes, Regional Levies, and Regional Expenditures on Regional Financial Independence and to determine whether the Balance Fund can moderate this influence. This research is a type of quantitative research using secondary data from the Regency/City APBD report in East Java Province. The data collection technique in this study used documentation techniques. The sample of this study amounted to 38 regencies/cities in East Java Province with a sampling technique that is saturated sampling. The data analysis method used in this study is panel data regression analysis with eviews13 software. The results showed that local taxes and levies have a positive and significant effect on Regional Financial Independence. Regional Expenditure has no effect on Regional Financial Independence. The Balance Fund can moderate by weakening the effect of Local Taxes on Regional Financial Independence. The Balance Fund cannot moderate the effect of Regional Retribution and Regional Expenditure on Regional Financial Independence. The implication of this research provides a strategic evaluation for local governments to reduce fiscal illusion by optimizing local resource management rather than relying heavily on central transfers.]]>
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