ABSTRACT
This research intent to know how influence of Economic Growth, Regions Original Income, and Common Allocation Fund to Allocating Budget of Capital Expense on Regencies and Municipalities at West Java and Central Java, 2004-2006.
Variables analyzed are Economic Growth,
Regions Original Income, and Common Allocation Fund as independent variables
and Capital Expense as dependent variable. Data collecting did by document
analysis method from Report of APBD Realization which is obtained from Dirjen
Perimbangan Keuangan Pemerintah Daerah site via internet and Gross Regional
Domestic Product (GRDP)
from Badan Pusat Statistik.
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Regression coefficient on constant is
23,956, while negative regression
(-5,054) express Economic Growth doesn’t having effect tocoefficient of
allocating of Capital Expense. Regression coefficient ofis -0,595 point out
increasing in Regions Original Income (PAD) will reduce allocating Capital
Expense, or it can said PAD’s acension allocated for Routine Expense. Meanwhile
regression coefficient of(0,869), expressing that is acension in Common
Allocation Fund (DAU) will increase Capital Expense allocation.
The result of the research show us the
fact that Economic Growth, PAD, and DAU, simultaneously, having effect to
Capital Expense. This is pointed out by F test equal to 12,697 and significant
(0,00 < 0,05).
Meanwhile, if it seen partially, PAD
and DAU have influence manifestly to Capital Expense, while Economic Growth
not. PAD has t test -2,759 < -1,995 and significant (0,007 < 0,05), DAU
has t test 5,600 > 1,995 and
significant (0,00< 0,05), while Economic Growth has t test -1,576 >
-1,995 and didn’t significant(0,12 > 0,05).
Therefore, suggestions to regencies and
municipalities government at West Java and Central Java are ought to that local
government can made more priority to allocate Capital Expense from each of
Regions Original Income.Because, Capital Expense is expenditure or expense that
done by local government
which has productive and long-term characteristic than Routine Expense, which
has consumptive and short-term characteristic.
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