Allocation Of Capital Expenditure Research Articles

ANALYSIS OF CAPITAL EXPENDITURE DETERMINANTS IN DISTRICTS/CITIES IN JAMBI PROVINCE

Regional Expenditures are details of regional income and expenditures within one year. Capital expenditure is one of the most important components of regional expenditures. Through capital expenditure, the budget prepared in the Regional Expenditures can be realized properly and correctly by improving services to the public. In this case, regional governments must be careful when allocating their resources. This research aims to analyze the influence of local revenue, general allocation funds, and special allocation funds on capital expenditure allocation. Capital expenditure plays a very important role in running the government system to improve community welfare and good governance. The population used in this research is all 11 regencies/cities in Jambi Province in 2018-2022. The sample in this research is this population due to data availability, while the data analysis technique used is multiple linear regression—analysis using SPSS. The research results show that local original income has a significant and positive effect on capital expenditure allocation, general fund allocation has no effect on capital expenditure, and special fund allocation also has no effect on capital expenditure. In contrast, local original income, General Allocation Funds, and special allocation funds simultaneously significantly impact capital expenditure allocation.

Pengaruh Alokasi Belanja Modal, Desentralisasi Fiskal, dan Kinerja Keuangan Daerah Terhadap Kemiskinan Dimediasi Indeks Pembangunan Manusia Kabupaten Sragen Tahun 2011-2020

Poverty is a problem for both developed and developing countries. Poverty is determined by the level of income and the ability of a country to meet its most basic needs. In addition, the factor that affects poverty is the human development index called fiscal decentralization. This study aims to describe the allocation of expenditures, fiscal decentralization, and financial performance of capital in the Sragen Regency to poverty. The research method in this study is descriptive quantitative, collecting information to test hypotheses or answer questions through questionnaires. The results obtained in this study showed a significant positive relationship between the allocation of capital expenditure in the Sragen district, a significant positive relationship between fiscal decentralization on poverty, and no significant or negative relationship between the development index on poverty.

Pengaruh Rasio Efisiensi dan Rasio Efektifitas PAD Terhadap Belanja Modal Pada Kabupaten/Kota di Jawa Barat

APBD in the form of capital expenditure allocation requires good management in order to obtain effective and efficient results. Therefore, good financial performance is needed, which is measured using financial analysis tools in the form of ratios. The ratios used in the analysis of government financial performance are efficiency ratios and PAD effectiveness ratios. This research was conducted with the aim of knowing the effect of the efficiency ratio and the effectiveness ratio of PAD on the allocation of capital expenditure in districts/cities in West Java. This study uses a quantitative research type where the data used is secondary data in the form of financial reports by taking the 2018-2022 budget realization report. The samples used in this study amounted to 42 samples. The analytical tools used in this study are Data Normality Test, Product Moment Correlation Analysis, Multiple Correlation, Multiple Regression Analysis, Partial Test (t test) and Simultaneous Test (f test), Coefficient of Determination. The results of the study partially show that there is no effect of the efficiency ratio on capital expenditure in regencies/cities in West Java. Partially there is no effect of the effectiveness ratio on capital expenditure in districts/cities in West Java. The results of the study simultaneously show that there is no effect of the efficiency and effectiveness ratio of PAD on capital expenditure in regencies/cities in West Java.

The Impact of Regional Original Income, Balancing Funds, and Fiscal Stress on Capital Expenditures and Regional Government Financial Performance

Over the last few years, the financial performance of district/city governments in Jambi province has decreased. This condition can be seen from the regional financial independence which is still very low. Therefore, this research aims to analyze more deeply the influence of local revenue, balancing funds, and fiscal stress on regional government financial performance, both direct and indirect influences through capital expenditure. This research is quantitative descriptive. The research was conducted in all districts/cities in Jambi province and used secondary data. Data was obtained through the BPK-RI Jambi Province Representative page in the form of audited regional government financial reports with an observation period from 2017-2022. The data analysis method uses the path analysis method. The study's findings demonstrate that original revenue that is largely generated locally and balancing funds have a major and favorable impact on capital spending. Capital spending is not significantly impacted by fiscal stress. The financial performance of local governments is not significantly impacted by local revenue or fiscal strain. The financial performance of local governments is significantly and negatively impacted by partly balancing funds. The financial performance of local governments is positively and significantly impacted by capital expenditures. Additionally, it was shown that capital spending might moderate the impact of balancing budgets on the financial performance of local governments. But, capital spending does not mitigate the impact of local revenue and fiscal strain on the financial performance of local governments. This research has implications for formulating policies to increase local original income, determining the allocation of capital expenditure and improving the financial performance of regional governments in districts/cities in Jambi province.

Pengaruh Kinerja Keuangan Pemerintah Daerah Terhadap Alokasi Belanja Modal

This study was conducted in western Indonesian cities during 2020-2022. This study aims to determine how the influence of local government financial performance on capital expenditure in western Indonesian cities both simultaneously and partially as seen from the fiscal decentralization ratio, effectiveness ratio, and efficiency ratio. This study uses a quantitative and descriptive analysis approach. The population of this study was 64 in western Indonesian cities using nonprobability sampling technique, so the sample included 192 financial statements from 3 years of observations. As well as technical documentation collects data through the regional government director’s balance sheet website. The analytical method in this study is panel data regression. The results testing with panel data regression using the Fixed Effect Model (FEM) show that financial performance simultaneously influences capital expenditure in western Indonesian cities during 2020-2022. Figure F > F table result obtained (2.853526 > 2,65), significance (0,000000 < 0,05). From the partial test results fiscal decentralization ratio has an negative effect and significance on capital expenditure allocation, effectiveness ratio has an positive effect and significance on capital expenditure allocation, and efficiency ratio has an positive effect and significance on capital expenditure Allocation in western Indonesian cities during 2020-2022.

Effectiveness of Local Revenue and Balance Funds on Capital Expenditure in Indonesian Local Government

Local revenues are revenues obtained by regions based on local regulations to finance regional expenditures, and balancing funds are sources of regional income received from the central government for equitable distribution of regional development in the context of implementing regional autonomy to achieve the objectives of granting autonomy to the regions. The purpose of this study is to determine the effect of regional own-source revenue and equalization funds partially on capital expenditures in provinces in Indonesia in 2020-2022. In this research, the author uses agency theory which outlines this theory provides a disclosure. This research uses a survey approach with a quantitative method research type. The data collection technique uses secondary data with secondary data documentation instruments. The population in this study are 34 provinces in Indonesia in 2020-2022 which will be sampled. The data is processed using the panel data regression statistical method. The results showed that local own-source revenue and equalization funds had a positive and significant effect on capital expenditures in provinces in Indonesia. This indicates that local own-source revenues and equalization funds, which are the largest part of regional revenues, are very capable of influencing the allocation of capital expenditures.

Effect of Total Assets, Capital Expenditure, Leverage, And GRDP to the Ratio of Regional Financial Independence in Nusa Tenggara Barat Province in 2018-2022

This study examines the effect of total assets, capital expenditure, leverage and PDRB on the ratio of district financial independence in NTB province in 2018-2022. Fiscal decentralization encourages to implement regional autonomy policies, namely giving authority to local governments to regulate finances in their respective regions. Tests were conducted on all districts in NTB province during 2018-2022. The results of this study indicate that total assets, capital expenditure and leverage have no significant effect on the financial independence of districts in NTB province. While PPDRB has a significant effect on the financial independence of districts in NTB province. The research findings indicate that the many or few assets owned by a region will not always affect regional financial independence, the allocation of inappropriate capital expenditures causes regional financial independence to decrease, and the use of capital expenditures to increase regional financial independence. total debt to equity ratio not used wisely, causing the level of regional financial independence to be low. The implications of this research provide warning signals to local governments to be more productive in managing regional wealth assets, allocating capital expenditures in accordance with the budget and on target, and more wisely in using capital expenditures debt to equity ratio local governments in order to increase regional financial independence.

Pengaruh Dana Alokasi Umum, Dana Alokasi Khusus, Dan Pendapatan Asli Daerah Terhadap Pengalokasian Belanja Modal Kabupaten Bungo Tahun 2016 – 2021

This study aims to examine the effect of the General Allocation Fund (DAU), Special Allocation Fund (DAK, and Regional Original Revenue (PAD) on Bungo Regency local government capital expenditure allocation for 2016-2021. The subject of this study is the Bungo Regency government, and the object of this study is the General Allocation Fund (DAU), Special Allocation Fund (DAK), Local Original Revenue (PAD), and Capital Expenditure Allocation. The type of data collected is quantitative data sourced from Budget Realization Reports and documents. The method used in this study is the Multiple Linear Regression test. The results showed that the General Allocation Fund (DAU), Special Allocation Fund (DAK), and Regional Original Revenue (PAD) together have a significant effect on the Capital Expenditure Allocation in Bungo Regency. Keywords: general allocation fund, special allocation fund, local original revenue.

The Effect of Financial Performance and Budget Ratcheting on Capital Expenditure Allocation in Districts/Cities of Central Java Province

This study examines the effect of regional financial performance (effectiveness ratio, efficiency, fiscal decentralization) and budget ratcheting on the allocation of capital expenditure in local governments in Central Java Province from 2018-2021. The population in this study were all Regency/City Regional Governments in Central Java Province in 2018-2021. The sample used was 35 local governments. Hypothesis testing using panel data regression. The results showed that regional financial performance (effectiveness ratio, efficiency, fiscal decentralization) and budget ratcheting affect capital expenditure allocation. Effectiveness and efficiency ratios negatively affect capital expenditure allocation, fiscal decentralization ratio positively affects capital expenditure allocation, and budget ratcheting negatively affects capital expenditure allocation. This study provides empirical evidence that one of the tools to analyze regional financial performance in managing regional finances is to conduct a financial ratio analysis. The novelty of this research is the addition of budget ratcheting variables that have not been widely studied in Indonesia, especially those using local government objects.

Factors Affecting Capital Expenditure In Districts in West Java Province

Purpose: This study examines and analyzes the effect of Original Local Own Revenue (PAD), General Allocation Fund (DAU), Special Allocation Fund (DAK), Revenue Sharing Funds (DBH), and Excess Budget Financing (SiLPA) on Capital Expenditures. Method: This study employed a quantitative research design. The study's population consisted of all 27 West Java Province Districts, including 9 cities and 18 regencies. With a total sample of 135 district budget realization reports data in the province of West Java, the sample size for this study was determined using a census sampling approach. Findings: The findings show a positive effect of PAD and DAU on Capital Expenditure, indicating that the amount of realized Capital Expenditure depends on the amount of PAD and DAU obtained by Districts in West Java Province. Meanwhile, DAK, DBH, and SiLPA do not affect the realization of Capital Expenditures. This indicates that the realization of capital expenditure is independent of DAK, DBH, and SiLPA. Novelty: First, this study uses a different research paradigm than before. Second, this research utilizes the latest era to vary the independent variables. Third, the problems chosen in this study are regencies and cities in West Java Province, which need attention regarding capital expenditure allocation. Keywords: Capital Expenditures, Original Local Own Revenue, Balance Funds, Excess Budget Financing

Pengaruh Kinerja Keuangan Daerah Terhadap Alokasi Belanja Modal Provinsi Sumatera Utara

This research aims to analyze the influence of regional financial performance on capital expenditure allocation. The data used is secondary data from 2018 to 2021 which comes from regional financial reports. Data analysis was carried out using multiple linear regression. The research results show that regional financial performance has a positive and significant effect on capital expenditure allocation. This shows that the better the regional financial performance, the greater the capital expenditure allocation that can be allocated. The ability of regional governments to manage their regional finances can be measured by analyzing regional financial performance. Regional financial performance consists of financial ratios. These financial ratios are used to assess regional financial independence in financing the implementation of regional autonomy, measure effectiveness and efficiency in realizing regional income, measure the extent of regional government activity in spending its regional income, measure the contribution of each source of income in the formation of regional income, see growth/development of income and expenditure during a certain period of time.

Pengaruh Pajak Daerah, Retribusi Daerah, Dana Alokasi Umum dan Dana Alokasi Khusus Terhadap Alokasi Belanja Modal

This research aims to determine the effect of regional taxes, regional levies, general allocation funds, special allocation funds on capital expenditure allocation (survey in the city/district of Bengkulu province for the 2014-2018 period). The research time period used was 5 years, namely the 2014-2018 period. The population of this study covers all cities and districts of Bengkulu province in the 2014-2018 period. The sampling technique uses purposive sampling technique. Based on predetermined criteria, 10 cities/districts were obtained. The type of data used is secondary data obtained from the official website of the Central Statistics Agency (BPS) and the Directorate General of Financial Balance (www.djpk.kemenkeu.go.id). The analytical method used is panel data regression analysis using Eviews software version 9.0. The panel data regression model used is the Common Effect Model. In this research the dependent variable is capital expenditure and the independent variables are local taxes, general allocation funds and special allocation funds. The research results show that regional levies have an influence on capital expenditure, while regional taxes, general allocation funds, special allocation funds do not have a significant influence on capital expenditure.

Pengaruh Efektivitas PAD, Ketergantugan Keuangan Daerah, dan Efisiensi Keuangan Daerah Terhadap Alokasi Belanja Modal Pada Pemerintah Provinsi Se-Sumatera

One way to achieve a goal in regional autonomy, especially in terms of improving welfare and community services, is through capital expenditure. This study aims to determine the effect of Financial Performance on the Capital Expenditure Allocation of Provincial Governments in Sumatra for 2017-2021. The population in this study is 10 Provincial Governments with a total observation data (sample) of 50 Provincial Government APBD Realization Reports throughout Sumatra. Testing this hypothesis using multiple linear regression with the help of Eviews 12 software. The results of this study show that partially the Effectiveness of PAD and Regional Financial Efficiency have a significant negative effect on Capital Expenditure Allocation. Meanwhile, Regional Financial Dependence does not have a significant effect on Capital Expenditure Allocation.

Pengaruh Rasio Derajat Disentralisasi, Rasio Kemandirian Keuagan Daerah dan Rasio Tingkat Pembiayaan SiLPA terhadap Alokasi Belanja Modal di Kabupaten/Kota Sumatera Barat

This study aims to determine the extent to which the influence of the degree of decentralization ratio, the ratio of regional financial independence and the SiLPA financing ratio can affect the capital expenditure allocation of district/city governments in West Sumatra. Data analysis used multiple linear regression analysis. Based on partial testing, 1) it is found that the ratio of the degree of decentralization has a significant positive effect on the allocation of capital expenditure in districts/cities in West Sumatra Province. 2) The ratio of regional financial independence has a positive effect on the allocation of capital expenditures in districts/cities of West Sumatra Province. .3) finance in the form of the ratio of SiLPA financing rates has a positive and significant influence on the allocation of capital expenditures in districts/cities in West Sumatra Province.

The Role of Capital Expenditure Allocation in Mediating Regional Financial Performance on Regional Economic Growth Aceh Province

This study aims to examine the role of capital expenditure in mediating the relationship between regional financial performance and economic growth in Aceh Province. The data source for this research uses secondary data sources from the Ministry of Finance and the Central Bureau of Statistics. Respondents in this study were local governments in Aceh with a total of 24 provincial, district, and city governments for 12 years from 2011-2022 period. The results of the analysis show that regional financial performance, as represented by the independence ratio, effectiveness ratio, efficiency ratio, harmony ratio, and personnel expenditure ratio, simultaneously has a positive and significant effect on capital expenditure. Meanwhile, the direct effect of capital expenditure allocation and regional financial performance is represented by the independence ratio, effectiveness ratio, efficiency ratio, harmony ratio, and personnel expenditure ratio, which simultaneously have a positive and significant effect on economic growth. This study found that the mediation of capital expenditure allocation on regional financial performance in Aceh province does not affect economic growth. Capital expenditure which is expected to be able to bridge regional financial performance indicators on economic growth, has not yet affected Aceh province.

Analisis Pendapatan Asli Daerah, Dana Alokasi Umum, Dana Alokasi Khusus dan Pengaruhnya Terhadap Alokasi Belanja Modal pada Kabupaten/Kota di Provinsi Jawa Tengah

This study aims to determine the effect of Regional Original Revenue, General Allocation Fund, and Special Allocation Fund on Capital Expenditure Allocation in Regency/City in Central Java Province for the period 2019-2022. The population used in this study were Regencies/Cities in Central Java Province, with a sampling technique, namely purposive sampling, so that the sample taken was 35 districts/cities, consisting of 29 regencies and 6 cities with the period 2019-2022. The type of data used is secondary data, obtained from the APBD Budget and Realization Report on the official website djpk.kemenkeu, and data collection techniques through literature study and documentation. The data analysis method in this study is descriptive statistics and classical assumption tests with hypothesis testing using multiple linier analysis F-test, Determination test, and t-test, Based on the test results, is shows that Regional Original Revenue, and the General Allocation Fund partially have a positive and significant effect on Capital Expenditure. Meanwhile, the Special Allocation Fund partially has no positive and significant effect on Capital Expenditure. Keywords: Regional Original Revenue, General Allocation Funds, Special Allocation Funds, and Capital Expenditure Allocation

Government Capital Expenditure and Economic Growth in Nepal

This paper explores the short-run and long-run causal relationship between government expenditure, labor force, gross investment, aggregate consumption, and economic growth of Nepal. The gross domestic product (Y), capital expenditure (K), population (L), gross investment (GI), and aggregate consumption (CO) have been used to find the causal relationship between government expenditure, and economic growth. The ARDL cointegration technique confirms a long-run association among the variables. The study revealed that capital expenditure, labor force participation, gross investment, and aggregate consumption all are the long-run driver of the economic growth of Nepal. These findings tell that efficient and timely allocation and use of capital expenditure, expansion of public as well private investment, and increased aggregate consumption matters for economic growth. The study also shows the existence of unidirectional causation from capital expenditure to growth and bidirectional relationship between other variables. The findings support Keynesian thought of government expenditure and economic growth. The regulatory and policymakers should focus on expansionary fiscal policy to stimulate capital formation, efficient productive investment, boost effective demand, and enhance long-run economic growth in Nepal.

Analysis of The Effect of Capital and Employee Expenditure on The Expenditure Index Through Labor Absorption in Jambi City

The purpose of this study was to determine capital expenditures and personnel expenditures had an effect on expenditures through labor absorption as an entrepreneurial variable in Jambi City in 2001-2021. To achieve the objectives of the study, a path analysis model was used with a qualitative descriptive research method. The conclusions of this study were: 1) Capital expenditure had a positive and insignificant effect on employment in Jambi City. 2) Personnel expenditure had a positive and significant effect on labor absorption in Jambi City. 3) Capital expenditure had a positive and significant effect on the expenditure index in Jambi City. 4) Personnel expenditure had a positive and significant effect on the expenditure index in Jambi City. 5) Labor absorption had a positive and significant effect on the expenditure index in Jambi City. 6) Employment was able to mediate the effect of capital expenditure and personnel expenditure on the Expenditure Index in Jambi Province. For these reasons, the strategy needed is that the government must increase the allocation of capital expenditures and personnel expenditures in its budget, as well as develop employment expansion programs.

The Influence of Original Revenue and Transfer Revenue on Capital Expenditure in South Tangerang City

The purpose of this study is to determine and analyze the effect of own-source revenue and transfer revenue on capital expenditure in South Tangerang City. The data used is time series data regarding local own-source revenue and transfer revenue on capital expenditure in South Tangerang City 2012-2021. Data analysis methods include Multiple Regression Analysis, t test, and coefficient of determination analysis. From the Multiple Regression Analysis, the regression equation Y=1.03819 + 0.521X2-0.612X3 is obtained. The constant of 1.03819 means that the increase in capital expenditure allocation is 1.03819 percent if there is no increase in local revenue and transfer revenue. The regression coefficient of the local own-source revenue variable shows a positive influence on capital expenditure of 0.521. From the t-test results, it can be explained that local own-source revenue has a significant effect on capital expenditure, where the t-count> t-table value is obtained (2.701> 2.306). The regression coefficient of the local own-source revenue variable shows a negative effect on capital expenditure of 0.612. From the t-test results, it can be explained that transfer revenues have a significant effect on capital expenditures in South Tangerang City, where the t-count value is obtained < t-table (1.259 < 2.306). From the coefficient of determination analysis, it is known that local revenue and transfer revenue affect capital expenditure by 47.4%, while the remaining 52.6% is influenced by other variables outside this research model. Increased capital expenditure has an important role because it has a long-term benefit period to provide services to the public because infrastructure development and the provision of various facilities are carried out to increase investment attractiveness. Industrial infrastructure development has a real impact on the increase in local revenue. So that if the Regional Government wants to improve public services and people's welfare by increasing capital expenditure, then the Regional Government must strive to explore as much local revenue as possible.

Intervening Alokasi Belanja Pada Pengaruh Kinerja Keuangan Terhadap Pertumbuhan Ekonomi Pemerintah Daerah Jawa Tengah

This study aims to examine and analyze the effect of local government financial performance as measured by the independence ratio, dependency ratio, degree of decentralization, PAD effectiveness ratio, degree of BUMD contribution and debt to income ratio on capital expenditure allocation and economic growth. As well as to examine and analyze the effect of local government financial performance as measured by the independence ratio, dependency ratio, degree of decentralization, PAD effectiveness ratio, degree of BUMD contribution and debt to income ratio on economic growth to mediated capital expenditure allocation.
 This research is a correlational study with a causal relationship, namely to examine the effect of regional financial performance on economic growth through the allocation of capital expenditures as an intervening variable. The sample in this study was 35 Regency / City Governments in Central Java. The data analysis technique used path analysis with SEM (Structural Equation Modeling).
 The results showed (1) Financial independence, financial dependence and the degree of BUMD's contribution did not have a direct effect on the allocation of capital expenditures. The degree of decentralization, the effectiveness of PAD and the debt to income ratio have a direct and significant effect on the allocation of capital expenditures. (2) Financial independence, degree of decentralization and effectiveness of PAD have a direct effect on economic growth. Financial dependence, degree of BUMD’s contribution, debt to income ratio and capital expenditure allocation do not have a direct and significant effect on economic growth. (3) Capital expenditure allocation mediates the effect of the degree of decentralization, the effectiveness of PAD and the degree of BUMD's contribution on economic growth. However, the capital expenditure allocation does not mediate the effect of financial independence, financial dependence and the debt to income ratio to economic growth.