PENGARUH PENDAPATAN ASLI DAERAH (PAD) DAN DANA PERIMBANGAN (DP) TERHADAP BELANJA MODAL

Abstract

The regional autonomy policy has brought great changes in the pattern of local goverment. The local government is required to maximize its potential in managing local finance. In the era of regional autonomy, local governments have a role that is more dominant than ever. One of the important issuess in this area autonomy is the ability to meet the needy of the expenditure. In addition, local governments are required to have a real development program and can be felt by community, including by capital expenditure. This research is meant to test is the Local Own-source Revenue as source of revenue and Fiscal balance transfers from the central government to regions has an influence to the Capital expenditure.The population is all districts in regions of East Java Province. The data uses secondary data which has been retrieved from Central government district / city on budget realization report in East Java Province from 2012 to 2014 which has been retrieved from the Audit Board of the Republic of Indonesia (BPKRI) East Java Province. Secondary data from the report of the result audit of Financial District or City. The analysis data instrument has been done by using multiple linear regressions. Based on the result of the test which has been done by the researcher shows that: The Local Own-Source Revenue has positive influence to the Capital expenditure and The Balance Fund does not have any influence to the Capital expenditure.
Keywords: Local Own Source Revenue (PAD), Fiscal balance (DP), Capital expenditure (BM).