ABSTRACT The research aims to measure the inequality of income distribution of each area and regional finance in Purbalingga District. The inequality of income distribution of each area was measured by the Williamson Index and the fiscal capacity was measured by the fiscal decentralization degree.The result of this research shows that the average of economic growth per year is 5.07 percent, the average of fiscal decentralization degree per year is 16.42 percent thai it is included to a high level of fiscal dependency on the central government category, while the average of inequality of income distribution of each area per year is 0.45 that it is included to a medium inequality category.Keywords: fiscal, decentralization, inequality, income, distributio
