Along with desentralization issue,problems with lack of financial resource has led local government to explore other altermatives including interest income which the governtmenteam on their saving account.T-he paper would like to examine about creating opportunitiesfor greater efficiency and savings for Provincial Government of east Java.Our review concerns with interest income and fiscal stress to gauge the relation of interest to earning. It also emphasizes that the local government has come under a sustained barrage of critism for their alleged reluctance to allocate to the development program rather than park their funds in a bank.