Authors : Murdanil; Arifuddin; Mursalim Nohong

Volume/Issue : Volume 10 - 2025, Issue 9 - September

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DOI : https://doi.org/10.38124/ijisrt/25sep375

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Abstract : Introduction: This study discusses the management model of the Regional Government Budget (APBD) through the General Allocation Fund (DAU). The DAU is transferred from the central government, and in the form of specific grants, the central government determines its use. This scheme is aimed at supporting more targeted and efficient regional infrastructure development.  Aim:  Analyze the regional budget management model through the implementation of DAU as specific grants.  Examine how specific grants improve efficiency, effectiveness, and accountability of regional spending.  Materials and Methods: A descriptive qualitative approach was employed, focusing on policies, allocation mechanisms, and the impact of DAU- specific grants on regional development.  Results: Findings show that DAU-specific grants significantly contribute to infrastructure development, especially roads, sanitation, and public facilities. This model aligns regional spending with national priorities but limits local governments’ flexibility to address unique local needs.  Conclusion: DAU-specific grants are effective in improving the quality of regional infrastructure in an equitable and measurable way. However, they reduce local autonomy, highlighting the need for balance between central priorities and regional flexibility.

Keywords : Regional Government Budget, General Allocation Fund, Specific Grant, Infrastructure Development, Regional Financial Management.

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