Author(s): Indah Martati,Besse Asniwaty and Suminto
This study aims to analyze and prove the impact of regional income on the welfare of regencies and cities community in East Kalimantan. The object of research is the realization of transfer funds consisting of general allocation funds, special allocation funds, revenue sharing funds and locally generated revenues consisting of regional taxes and levies as well as capital expenditures that reflect the welfare of the people of the two regencies and 3 cities determined as sample areas research period 2011-2017. The data used is the time series data combined with panel data from the five observation areas. The analytical tool used is the Ordinary Least Square method with multiple regressions. The results showed that the level of welfare of the district/city community in East Kalimantan was simultaneously affected by regional income and partially affected by transfer funds and regional generated revenue except for revenue-sharing funds and regional taxes. The amount of revenue-sharing funds has not contributed significantly to the welfare of the community. The abundance of natural resources in regencies/cities in East Kalimantan has not been able to generate significant local tax revenues to improve public services. There is a need for a firmer fiscal policy to manage and direct the regional economy to lead to better conditions by increasing local tax revenue and streamlining revenue sharing funds management for public services.