The effect of local government revenue on capital expenditures with economy growth as moderating

Abstract

The goal of this study is to see if local government revenue, which includes Local Own-source Revenue, General Allocation Fund, and Special Allocation Fund, has an influence on capital expenditures using Economic Growth as a moderating variable. By gathering data using the documentation study approach, a sample was formed based on the criteria of districts and cities with Local Government Budget reports for 2018-2021. Data analysis techniques include multiple linear regression and moderated regression analysis. The results of the study found that there was an influence between Local Own-source Revenue, general allocation funds on capital expenditures, while special allocation funds and economy growth had no effect on capital expenditures. Economic growth cannot moderate the relationship between Local Own-source Revenue and capital expenditures, but can moderate the relationship between general allocation funds and special allocation funds to capital expenditures.