THE FLYPAPER EFFECT PHENOMENON OF INTERGOVERNMENTAL TRANSFERS DURING THE COVID-19: EVIDENCE FROM INDONESIA

This study aims to confirm the flypaper effect phenomenon and impact of Covid-19 pandemic on local own-source revenue (LOR), general allocation fund (GAF), government financing expenditure in Indonesia. The research used a quantitative method, while sample was data regional budget (RGB) realization 335 governments 2019 – 2020. were analyzed using Moderating Regression Analysis. found that there encouraged use GAF, instead LOR for their expenditure. GAF expenditures higher during period. To overcome phenomenon, central is advised improve policy by setting priorities its use. Local must encourage micro, small, medium enterprises help support LOR. proves exists developing countries implement presidential system (republic) provide substantial empirical evidence spending policies crisis non-crisis (Covid-19).