<![CDATA[This research aims to determine the influence of Regional Original Revenue and Balancing Funds on Regional Expenditures in Medan City for the 2016–2023 period. The research applies a quantitative approach with secondary data from the Directorate General of Fiscal Balance (DJPK) and the Central Statistics Agency (BPS). The multiple linear regression method with classical assumption tests and hypothesis testing through t-tests, F-tests, and coefficients of determination. The results show that Regional Original Revenue has a positive and statistically significant effect on Regional Expenditures, compared to Balancing Funds. Simultaneously, both variables have a significant contribution to Regional Expenditures. The research model is able to explain 84.4% of the variation in Regional Expenditures (Adjusted R Square = 0.844), while the remaining 15.6% is influenced by other factors outside the model. This study reveals that Regional Expenditure policies are more influenced by increases in Regional Original Revenue than by Balancing Funds. Therefore, regional governments need to optimize Regional Original Revenue to increase fiscal capacity and support sustainable regional development.]]>
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