This study aims to analyze the effect of regional financial performance on economic growth in Tual City. Regional financial performance reflects the local government’s ability to manage financial resources effectively, efficiently, and independently in support of sustainable economic development. The study is theoretically grounded in Fiscal Decentralization Theory, which holds that granting financial authority to local governments can strengthen fiscal independence, improve resource allocation, and accelerate regional economic growth. The variables include regional financial independence, budget efficiency, and the effectiveness of financial management as independent variables, with economic growth as the dependent variable. Secondary data were obtained from the Budget Realization Reports and Gross Regional Domestic Product (GRDP) of Tual City for the period under study. Multiple linear regression was used to test the relationship between regional financial performance and economic growth. The results indicate that regional financial performance has a positive and significant relationship with economic growth. They further confirm that higher levels of regional financial independence and effectiveness make a greater contribution to GRDP growth and community welfare.
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