<![CDATA[Abstract— This study aims to analyze the influence of Locally-Generated Revenue (PAD), Capital Expenditure, Balancing Funds, and the Budget Surplus (SiLPA) on the financial performance of regency/city governments in Aceh Province during the 2020–2024 period. Financial performance in this study is measured using the PAD effectiveness ratio. The study employs a quantitative approach utilizing secondary data obtained from the Directorate General of Fiscal Balance (DJPK). The scope of the study covers 23 regency/city governments over a five-year observation period, resulting in 115 observations. Data were analyzed using panel data regression, with the Fixed Effect Model (FEM) selected based on the results of the Chow Test and Hausman Test. The results indicate that PAD has a positive and significant effect on local government financial performance. Meanwhile, Capital Expenditure, Balancing Funds, and SiLPA do not show a significant effect. However, simultaneously, the four variables significantly influence local government financial performance. The Adjusted R-squared value of 53.53% indicates that the variation in financial performance can be explained by the variables in the model, while the remaining 46.47% is influenced by factors outside the scope of the study. These results suggest that improvements in local government financial performance are more closely linked to the ability to optimize Locally-Generated Revenue than to the magnitude of Capital Expenditure, Balancing Funds, or SiLPA.Keywords— Locally-Generated Revenue (PAD), Capital Expenditure, Balancing Funds, SiLPA, Local Government Financial Performance]]>
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