PENGARUH DANA PERIMBANGAN DAN RASIO KEUANGANTERHADAP INDEKS PEMBANGUNAN MANUSIA KABUPATEN DAN KOTA DI PROVINSI SUMATERA BARAT PERIODE 2010-2014
The research aims to examine the effect of funds balance (the General Alocation Fund, the Special Allocation Fund, the Revenue Sharing Fund) and the effect of financial ratios (Local Financial Dependency Ratio, Regional Financial Independence Ratio, Ratio Effectiveness of Locally Generated Revenue and Ratio Effectiveness of Local Tax) to Human Development Index. Human development Index is one of the measure that can be used in assessing the success of local government performance in providing good service to the society.The population in this research is the regencies/municipalities in West Sumatera.The data used is the secondary data of the Regional Revenues and Expenditures Budget of regional government of regencies/municipalities in West Sumatera in 2010-2014. Data were obtained from financial management services of West Sumatera. The results of the research shows that the General Allocation Fund (DAU), the Special Allocation Fund (DAK), Regional Financial Independence Ratio, Ratio Effectiveness of Locally Generated Revenue and Effectiveness of Local Tax, effect on the Human Development Index (HDI). While the Revenue Sharing Fund and Local Financial Dependency Ratio no effect on the Human Development Index (HDI).Keywords: Funds Balance, Financial Ratios, Human Development Index (HDI).