PENGARUH PAD, DAU DAN DAK TERHADAP BELANJA MODAL PADA KABUPATEN/KOTA DI JATIM

Abstract

Capital Expenditure is one of the budget expenditures which have objectives in order to gain or add some other
beneficial assets and bigger profits compared to one period of accounting. While there were some factors which
affect the capital expenditure namely, Local-owned Source Revenue, General Allocation Fund, and Specific
Allocation Fund. Therefore, this research aimed to find out the effect of Local-owned Source Revenue, General
Allocation Fund, and Specific Allocation Fund on Capital Expenditure of districts/cities in East Java province
during 2017-2020. The research was quantitative, in which it analyzed certain populations or samples. The
population was all districts/cities in East Java province. In line with that, there were 37 districts/cities which
fulfilled the criteria given during 2017-2020. Moreover, the data were secondary in form of Realization Report of
Local Budget during 2017-2020. The research result concluded that both Local Budget and General Allocation
Fund had a positive and significant effect on Capital Expenditure. On the other hand, Specific Allocation Fund
had a negative and insignificant effect on Capital Expenditure.