F inancial performance of regional government can be seen through the financialindependence of the region. This is the ability of the local government to finance itsgovernment activities through local revenue without transfer funds from the centralgovernment and loans. This research was conducted to find out whether there is arelationship between the variables of general allocation funds, special allocation funds,and capital expenditures on government financial performance as measured with regionalfinancial independence. Variable general allocation funds, special allocation funds, andcapital expenditures are measured based on the realized value in rupiah. The analyticalmethod used is panel data regression with saturated sample technique. The data used areRegional Government Financial Reports, namely Budget Realization Reports, TransferPosture Reports to Villages and Regions and APBD Reports from Regencies and Cities ofNorth Sumatra Province for 2017-2022. From the results of research that has been done,special allocation funds have a significant negative effect which will reduce the financialperformance of local governments. General allocation funds and capital expenditureshave a significant positive effect which will improve local government financialperformance.