THE RELATIONSHIP BETWEEN LOCAL OWN REVENUES AND GENERAL FUND ALLOCATION TO CAPITAL EXPENDITURE ON LOCAL GOVERNMENT IN ALL OF WEST JAVA PROVINCE FISCAL IN 2015
The research aims to determine how the relationship between local revenues and general fund allocation to capital expenditure on local government in all of West Java Province fiscal in 2015. Through the implementation of regional autonomy, capital expenditure by local governments for the procurement of assets as investment which aimed at improving public services and welfare. In fact, this has not been fully achieved when seeing capital expenditure allocation relatively was not too high if it is compared to the other expenditures, whereas the more capital expenditure in the form of infrastructure will certainly have an impact on regional economic growth. The method used in this research is descriptive and verification methods. The population and sample in this research were 26 districts / cities in West Java. The test statistic used is the multiple correlation analysis with the F test and t test at a significance level of 5%. The results show that the Local Revenue has a very strong positive relationship with capital expenditure of 0.9013. Similarly, the General Allocation Fund has a moderate positive relationship with capital expenditure of 0.58987. In addition, by using multiple correlations , it is showed that Local Revenue and the General Allocation Fund have a very strong positive relationship with capital expenditure of 0,9413.
Topic: Financial Management and Accounting