Abstract 

 

The standard of the success of a leader not be judged from a building of its great ability, cooperation 

between large states but more priority to how the large of citizen feel safety from the role of leader itself.

Islam has set out in detail how big responsibilities from a leader of the citizens and prosperity is the right of

absolute for Ummah. The allocation of fund developed by the government in the fiscal balance need to be

observed from the point of finance by the government, oriented people needs whether or not.  

This research using secondary data obtained from report on local government finances in Central

Java published by the Central Bureau of Statistics and the Ministry of Finance, the sample used is that the

whole of districts has issued financial reports every year, purposive sampling is a technique used in the

determination of sample, from this technique obtained a sample as many as 64 years of two reports the

realization of the existing budget and meet the criteria. Descriptive statistics and multiple linear regressions 

in research are used as a technique of the analysis.  

The result of this research shows that the largest of the realization of fiscal balance transfers that has

been allocated to each other regional government particularly in the Province of Central Java still indicate

the activities spending on employee expenditure, therefore it can be inferred that the level of people

prosperity still minimal because the direction from employee expenditure it only on government employee

not to the people overall.  

 

Keyword : Fiscal Balance Transfer, Local Goverment, Prosperity for Ummah