This study aims to determine and analyze the influence of local government financial performance consisting of variables of regional independence ratio, effectiveness of regional finances ratio, regional revenue growth ratio, and the suitability of regional spending ratio on welfare society. The study was conducted in 13 regencies/cities in South Kalimantan Province using secondary data from 2013-2017. The study was conducted using 65 data. However, after testing the classical assumptions there are symptoms of autocorrelation. After the data is treated, there are 63 data that can be processed and analyzed using multiple linear regression. The results of the study provide empirical evidence that only the regional independence ratio variable has a significant influence on the welfare society in all regencies/cities in South Kalimantan Province.

Keywords:   financial performance of local governments, regional independence ratio, effectiveness of regional finance ratio, regional revenue growth ratio, suitability of regional spending ratio, welfare society