THE EFFECT OF FINANCIAL PERFORMANCE OF SOPPENG REGENCY GOVERNMENT ON COMMUNITY PROSPERITY LEVEL

The research aimed to perceive the regional autonomy implementation at Soppeng Regency by investigating: 1) whether the financial independence level through the expenditure compatibility and budget absorption could improve the community prosperity; 2) whether the effectiveness level of the Regional Original Revenue (ROR) through the expenditure compatibility and budget absorption could improve the community prosperity. The research used the quantitative approach the time series as the secondary data for ten years (from 2007 to 2016). Data were analysed using the path analysis to find out the effect of the independent variable on the dependent variabel with the significance level of 5%. The research data were analysed using Eviews. The research result indicates that the financial independence throught the expenditure compatibility and budget absorption has the positive and significant relationship with IPM, however, the effectiveness of ROR through the expenditure compatibility and budget absorption has the positive and insignificant relationship with IPM. This also indicates that the regional autonomy implementation at Soppeng Regency has not fully fulfilled the mandate of autonomy acts which is expected to be able to optimize the economic potentials in order to improve the community prosperity.