PENGARUH PAD, DAU DAN SILPA TERHADAP BELANJA MODAL DENGAN PERTUMBUAHAN EKONOMI SEBAGAI VARIABEL MODERATING

Abstract

Capital expenditure in the local budget relates directly to the local income that is gained from Local-owned Source Revenue (PAD) and balance fund. Those two play an important part in supporting economic growth and increasing public wealth. Therefore, this research aims to determine the effect of PAD, General Allocation Funds (DAU), and Remaining Budget Financing Surplus (SiLPA) on capital expenditure. Also, it aims to find out the economic growth in moderating the effect of PAD, DAU, and SiLPA on capital expenditure. The study applies quantitatively. Furthermore, the data were secondary in the form of Budget Realization Reports that came from BPKAD. The population consists of Sub- districts/cities in East Java province. Moreover, the data collection technique used purposive sampling with 35 Sub-districts/cities as samples. The data analysis technique used Moderating Regression Analysis (MRA). The result indicates that PAD has a positive effect on capital expenditure. However, DAU does not affect capital expenditure. In contrast, SiLPA has a positive effect on capital expenditure. Meanwhile, economic growth cannot moderate the effect of PAD as well as SiLPA on capital expenditure. On the other hand, economic growth can moderate the effect of DAU on capital expenditure.