AbstractrnrnThis study aims to test and provide empirical evidence regarding the effect of RegionalrnOriginal Income (PAD), General Allocation Funds (DAU), and Remaining Over Budgetrn(SILPA) on direct expenditure. The number of observations of this study was 35 data withrna cross section of 7 districts / cities in the Ex Surakarta Residency. The data used is thernvisualization of APBD data, namely the realization of PAD, DAU, SILPA and district /rncity Direct Expenditures at the Ex Surakarta Residency from 2012-2016. The data isrnsourced from the Directorate General of Fiscal Balance of the Ministry of Finance ofrnIndonesia. Testing is done by panel data analysis. The results of the analysis using thernChow Test show that PAD and DAU have a positive and significant relationship to DirectrnSpending, but for SILPA it does not have a significant effect on Direct Spending. Thernresults of the F test simultaneously show that the value of Prob (F-statistic) 0.000 t table arern8.562336> 1.694, DAU t count> t table which is 4.800654> 1.694, and SiLPA t count