PENGARUH PENDAPATAN ASLI DAERAH, DANA ALOKASI UMUM DAN LUAS WILAYAH TERHADAP BELANJA MODAL

Abstract

This research aimed to examine the effect of Local-owned Source Revenue, General Allocation Fund, and area on
Capital Expenditure of districts/cities in East Java Province during 2014-2018. The research was quantitative.
Moreover, the data collection technique used purposive sampling, in which the sample was based on criteria
given. In line with, there were 148 financial statements from 38 districts/citties in East Java province during
2014-2018, which were taken from the Audit Board as the sample. Furthermore, the data analysis technique used
multiple Linear regression with SPSS 22. The research result concluded that Local-owned Source Revenue had a
positive effect on Capital expenditure. This meant, the higher the revenue was, the increase the Capital
expenditure would be. Likewise, the General Allocation Fund had a positive effect on Capital expenditure. It
meant, the more the Fund increased, the more the Capital expenditure would be. Similarly, the area had a
positive effect on Capital expenditure. In other words, the wider the are of districts/cities was, the more facilities
which needed to be fulfilled by the government in order to have good public services.