The Effect of Regional Original Revenue, General Allocation Funds, and Special Allocation Funds on Capital Expenditures at Regional Governments in Aceh Province, Indonesia

Abstract

The goal of research is to analyze the effect of Regional Original Revenue (PAD), General Allocation Fund (DAU), and Special Allocation Fund (DAK) on Capital Expenditure. Secondary data from research is obtained from the Budget Realization Report (LRA) of 23 Districts/cities in Aceh Province for the period 2011-2015. This research is a quantitative research with multiple regression analysis method using the SPSS program to examine the effect of Regional Original Revenue, General Allocation Funds, and Special Allocation Funds on Capital Expenditures either partially or simultaneously. The results showed that simultaneously PAD, DAU, and DAK had a significant positive effect on capital expenditure. Partially Regional Original Revenue, General Allocation Funds, and Special Allocation Funds have a positive influence on Capital Expenditure.