The object of this research was to determine the effect of General Allocation Fund, Specific Allocation Fund, and Local Governance Revenue on Central Java Province. The research method used is causal method which determine the effect of the independent variables with the dependent variable. Data analysis method used in this study is multiple regression analysis and testing ofclassical assumptions. Specific target of this study aims to determine the performance of local governments in tapping the potential revenue for the general welfare of the community through direct expenditure. The results are from hypotheses proposed in this study, there are two hypotheses are significant impact, and one is not significant impact General Allocation Fund, and Local Governance Revenue positive and significant impact on Direct Expenditure. The Specific Allocation Fund had no significant impact. Specific target of this study aims to investigate the performance of local governments and improve the financial performance of the local Governance.