The impact of Regional Own-Source Revenue, General Allocation Fund, and Revenue Sharing Fund on Fiscal Independence of Lampung Province (A Panel Data Analysis 2020-2024)

Abstract

This study analyzes the effect of Local Own-Source Revenue (PAD), General Allocation Funds (DAU), and Revenue Sharing Funds (DBH) on the fiscal independence of Lampung Province using panel data from 2020 to 2024. The Chow test and Hausman test indicate that the Fixed Effect Model (FEM) is the most appropriate model. The results show that PAD has a positive and significant effect on fiscal independence, whereas DAU and DBH have a negative and significant effect, implying that reliance on central government transfer funds reduces fiscal independence. The F-test confirms that the three variables jointly have a significant effect on fiscal independence, with an R-squared value of 0.988915. These findings highlight the need to strengthen PAD through digitalization and diversification of local revenue sources, as well as to manage DAU and DBH more efficiently in Lampung Province