The purpose of this study is to examine the effect of economic growth, local
government revenue, general allocation fund, specific allocation fund towards
the capital expenditure of municipality in cental Java during 2015-2017. The
independent variabels of this study are economic growth, the local government
revenue, the general allocation fund and the spesific allocation fund. Meanwhile,
the dependent variabel was the capital expenditure.
The population were municipality in Central Java during 2015-2017 taken
from the report of actual income and expenditure budget during 2015-2017. The
sampling method used in this study was census method by taking the entire
population as a sample of 35 municipalities. The analysis technique used in
research is multiple linear regression analysis.
The result of the analysis showed that economic growth, general allocation
funds and specific allocation funds have no effect towards capital expenditure.
Meanwhile, local government revenue has a significant positive effect towards
capital expenditure.