THE EFFECT OF REGIONAL ORIGINAL REVENUE (PAD), GENERAL ALLOCATION FUND (DAU), SPECIAL ALLOCATION FUND (DAK), AND REVENUE SHARING FUND (DBH) ON REGIONAL EXPENDITURE IN NORTH SUMATRA PROVINCE (2020–2024)

Rima Sefty Vadela Harahap (Universitas Malikussaleh)
Jumaini (Universitas Malikussaleh)
Rico Nur Ilham (Universitas Malikussaleh)
Nurlela (Universitas Malikussaleh)

Journal of Accounting Research, Utility Finance and Digital Assets (JARUDA)
Vol. 5 No. 2 (2026): October (ON-PROGRESS)

This study aims to examine the effect of Local Own-Source Revenue, General Allocation Fund, Special Allocation Fund, and Revenue Sharing Fund on Regional Expenditure in North Sumatra Province. This study uses a combination of cross-sectional and time-series data from 33 regencies/cities in North Sumatra Province during the period of 2020–2024. The data analysis method used is Panel Data Regression with the assistance of EViews 10. The results show that Local Own-Source Revenue partially has a positive and significant effect on Regional Expenditure in North Sumatra Province. The General Allocation Fund partially has a positive and significant effect on Regional Expenditure in North Sumatra Province. The Special Allocation Fund partially has a positive and significant effect on Regional Expenditure in North Sumatra Province. Meanwhile, the Revenue Sharing Fund partially has a negative and significant effect on Regional Expenditure in North Sumatra Province. Simultaneously, Local Own-Source Revenue, General Allocation Fund, Special Allocation Fund, and Revenue Sharing Fund have a significant effect on Regional Expenditure in North Sumatra Province. It is recommended that the Government of North Sumatra Province increase its fiscal capacity to reduce dependence on Central Government Transfer Funds and ensure more sustainable regional expenditure management.