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The Effect Of Regional Original Income And Balancing Funds On The Allocation of Capital Expenditures

Abstraksi:
This study aims to determine the effect of regional original income, balancing funds, on the allocation of
capital expenditure in districts/cities of North Sumatra province. This research method uses descriptive and
quantitative data. The sample of this research is Regency/City APBD data in North Sumatra in 2018-2020.
The results of the calculation of the regression line in this study were obtained for PAD to Capital
Expenditure Y = 153853702,041 + 0.342X1, Balancing Fund to Capital Expenditure Y = 13194181,034 +
0.224X2. The results of the partial test in this study stated that the Regional Original Revenue, Balancing
Fund had an effect on capital expenditure. Based on the results of the simultaneous F test, it is known that F
count (68,077)> F table 2.70. With a significance level of 0.00> 0.05, this indicates that the effect of the
independent variables is Regional Original Revenue, Balance Fund, and Remaining Budget Financing
Simultaneously (together). ) has a significant effect on the allocation of capital expenditures. Regency/City of
North Sumatra Province. The results obtained from the R Square value of 0.586 or equal to 58.6%. It means
that the analytical model used is able to explain Regional Original Income, Balancing Funds, Remaining
Budget Financing (SilPA) to the Capital Expenditure Allocation of the Regency/City of North Sumatra Province
by 58.6%, while the remaining 41.4% is influenced by other factors not examined. such as more residual
budget financing and other legitimate income
Keywords: Regional Original Income (PAD), Balance Fund, Capital Expenditure.
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