The Implementation of District and Rural Fiscal Balance through Village Allocation Budget in the Form of Autonomous Village Program in Indragiri Hilir District within Local Economic Empowerment

The research aims to: (1) analyze the governanceandeffectiveness ofthe implementationof ADD (Village Fund Allocation)asa stimulantof basicruralinfrastructuredevelopment budget; (2) investigate the effect ofthe implementationof ADDtowardslocaleconomygrowth in a sustainable manner. Further, this studyemploys twoapproaches, namely: qualitativeandquantitative. Qualitativeapproachis usedtorevealthe process ofgovernance implementationof ADD, while thequantitative approachis usedtodetermine the effectof ADDonthe localeconomy development.The results concludedthat: (1) In principle, the implementationof ADDstill containsa lot ofproblemsboth in theadministrativelevelas well asthe appearance ofa conflict of interestin thepoliticaldimension; (2) on theaspectsof planningandimplementation, itis considered to beeffective, andthe performanceneeds to be well maintained, while theperformancereportingaspectsstillneed to be improved; (3) the mostinfluentialvariable on the potential developmentof the villageisthe condition ofinfrastructure, followed by other variables, that is: the implementation ofADD, ADDplanning, and community participation.