ABSTRAKThe purpose of this research is to examine directly the effect of region original revenue, general fund allocation, specific fund allocation and capital expenditure on economic growth, to examine directly the effect of economic growth on poverty and unemployment and examine indirectly the effect of region original revenue, general fund allocation, specific fund allocation, and capital expenditure on poverty and unemployment; and to examine directly the effect of region original revenue, general fund allocation, specific fund allocation, and capital expenditure on poverty and unemployment. The samples of study are region expense and revenue budget in 2001 - 2005 at 38 municipal. The result of study with regression was indicated that region revenue and general fund allocation have directly significant effect at level 0.01 on the economic growth, economic growth have directly significant effect at level 0.01 on the poverty, and the unemployment, the region original revenue and general fund allocation have indirectly significant effect on the poverty and the unemployment.
