THE EFFECT OF REGIONAL ORIGINAL INCOME (PAD) AND GENERAL ALLOCATION FUNDS (DAU) ON CAPITAL GOODS EXPENDITURE IN WEST PASAMAN

Abstract

Delegation of budget management authority to Regional Governments in the framework of regional autonomy provides flexibility for Regional Governments to plan and implement development for the welfare of the people. For this purpose, one of the important aspects in the APBD is capital expenditure. Capital goods are very urgent for improving welfare and as a stimulus for improving the economy of the community. Among the sources of funds to finance capital expenditure are Regional Original Revenues (PAD) and General Allocation Funds (DAU). Are there funds obtained from PAD and DAU that are factors that influence the policy for the procurement of capital goods? This study will look at whether in the West Pasaman Regional this happened. The data studied were the 2012-2016 Regional Budget (APBD). The research method was quantitative associative where the hypothesis was tested by multiple linear regression. The results showed that both PAD and DAU had no significant effect. This shows that the policies of the West Pasaman Regional Government in the procurement of capital goods are not directly related to the amount of revenue from the PAD or the transfer funds in the form of DAU. Many other factors have resulted in why PAD and DAU have no significant effect on the procurement of capital, such as emergency sector financing and priorities.
 
 Keywords: Capital goods expenditure, Regional Original Revenues (PAD) and General Allocation Funds (DAU)