The purpose of this study is to analyze and determine the influence of fiscal potential and needs in the model of allocation formulation of regional bottom air (BDB) in North Sumatra province. The variables used in this study are the performance of the regional bottom aid (Y) as dependent variable while is total population (X1), poverty index (IKR) (X2), size of region (X3), construction cost index (CCI) (X4), gross domestic product (GDP) (X5), regional revenue (PAD) (X6), balances of fund (X7) and income per capita (X8) as independent variables. The data analysis used in this study is structural equation models, while the population is all the 33 districts/cities in North Sumatera province, and the sampling technique is using purposive sampling method with consideration of specific criteria. The findings concluded that the dominant variable in determining the allocation of the regional bottom aid (BDB) in North Sumatra is the total population, construction cost index (CCI), the financial fund balance and income per capita.
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