South Sumatra Capital Expenditure Budget Determinants: What Factors Influence?

Azhara Oktavianita Pratiwi; Imelda Sari

doi:10.58777/rag.v3i1.251

Authors

Azhara Oktavianita Pratiwi Faculty of Economics and Business, YARSI University, Jakarta
Imelda Sari Faculty of Economics and Business, YARSI University, Jakarta

DOI:

https://doi.org/10.58777/rag.v3i1.251

Keywords:

Economic Growth, Fluctuations in Regional Original Income, Fluctuations in General Allocation Funds, Fluctuations in Special Allocation Funds

Abstract

The purpose of this study is to examine the impact of economic growth, fluctuations in local revenue, general allocation funds, and special allocation funds on capital expenditures. The sample consists of 17 observations from South Sumatra’s Regency/City governments (13 Regencies and 4 Municipalities) during 2018–2020. Secondary data were obtained from the Republic of Indonesia Financial Audit Agency (BPK RI). Data on Gross Regional Domestic Product (PDRB) and Regional Revenue and Expenditure Budgets (APBD) were sourced from Regional Government Financial Reports (LKPD). Quantitative analysis techniques were employed. The results show that fluctuations in Regional Original Income and Special Allocation Funds significantly influence Capital Expenditures. However, Economic Growth and General Allocation Fund fluctuations do not impact Capital Expenditures. Managerially, positive economic growth can increase regional income, enabling higher capital expenditure. Fluctuations in General Allocation Funds may affect budget stability, requiring strategies to manage uncertainties.

References

Alifa, Anggrah Rezka., Rahayu, Sri. (2020). The Influence of Economic Growth, Original Regional Income, Balancing Funds, and Remaining Budget Financing on Capital Expenditures. Journal of Telkom University 9(2)

Alpi, F., and Sirait F. (2022). The Influence of Economic Growth, Original Regional Income, General Allocation Funds, and Special Allocation Funds on Capital Expenditures in Districts/Cities in North Sumatra Province. Journal of Tax and Accounting, 23(01):1-13 https://doi.org/10.29103/jeru.v3i3.3583

Anggareni, R., and Sapari. (2023). The Influence of Regional Original Income, General Allocation Funds and Profit Sharing Funds on Capital Expenditures. Journal of Accounting Science and Research, 12 (7): 1-19 https://doi.org/10.33087/jmas.v7i1.404

Asmawati, A., Saragih, A., Panjaitan, NJ, & Christina Kumala. (2019). Analysis of Potential Regional Tax Revenue and Regional Levy for Pematangsiantar City. Owner: Accounting Research and Journal, 3(2), 339-349. https://doi.org/10.33395/owner.v3i2.145

Asmawiah, Siti Hajar., Sulistiyo, Hary. (2020). The Influence of Original Regional Income on Capital Expenditures in Regencies/Cities of West Java Province in 2020. Tambusai Education Journal. 6(1)

Asnawi, A., & Fitria, H. (2018). The influence of the money supply, interest rates, and inflation on economic growth in Indonesia. Indonesian Economics, 7(01), 24-32. https://doi.org/10.29103/economica.v7i1.1129

Asrianto, A., & Sukmawati, S. (2022). Analysis of the Calculation of the Cost of Production of Purebred Chicken Eggs PT. Jaya Perkasa in Dampang Village, Bantaeng Regency. YUME: Journal of Management, 5(2), 376-384

Ayem, Sri dan Desy Dyah Pratama. (2018). Pengaruh Pertumbuhan Ekonomi, DAU, DAK, dan PAD terhadap Belanja Modal di Provinsi DIY Periode 2011-2016. Jurnal Akuntansi Dewantara. 2(2)

Darise, Nurlan. (2014). Regional Financial Accounting (Public Sector Accounting). PT Index. Jakarta.

Diputra. D.H and Idayati.F. (2023). The Effect of Original Regional Income, General Allocation Funds, and Special Allocation Funds on Capital Expenditures. Journal of Accounting Science and Research, 12 (4):1-19 https://doi.org/10.37012/ileka.v4i2.1869

Djatmika, Gatot Hery. (2022). The Effect of Regional Original Income and Balancing Funds on the Allocation of Capital Expenditures in Regions/Cities of North Sumatra Province. Neuro Quantology. 20 Pages 107-114.

Indonesian Republic's finance ministry. (2017). Summary of Regional Revenue and Expenditure Budget. Directorate General of Financial Balance. Jakarta

Irman, M., & Purwati, AA (2020). Analysis of the Influence of Current Ratio, Debt to Equity Ratio, and Total Asset Turnover Toward Return on Assets on The Automotive and Component Companies That Have Been Registered In the Indonesia Stock Exchange Within 2011-2017. International Journal of Economics Development Research (IJEDR), 1 (1), 36-44. https://doi.org/10.37385/ijedr.v1i1.26

Lovita, E., Luthfia, D., & Noormansyah, I. (2023). Cash Budget as Internal Control in Regional Cash Financial Management. Taxation and Public Finance, 1(1), 30–37. https://doi.org/10.58777/tpf.v1i1.166

Nordiawan, Deddi. (2017). Budget in a Government. Salemba Four. Jakarta

Now, Umar and Roger Bougie. (2017). Research Methods for Business: Approaches Skills-Development. Edition 6. Book 1. Second Printing. Salemba Four. Jakarta.

Nurdiwaty, Diah., Badrus Zaman., and Efda Kristinawati. (2017). Analysis of the Effect of Economic Growth, Regional Original Income, Balancing Funds, and Other Legitimate Income on Capital Expenditures in East Java. Journal of Business Applications. 17(1) https://doi.org/10.20885/jabis.vol17.iss1.art3

Pradana. YE and Handayani. N. (2017). The Influence of Original Regional Income, General Allocation Funds, and Special Allocation Funds on Capital Expenditures. Journal of Accounting Science and Research, 6(3):1-24 https://doi.org/10.35838/jrap.v3i01.118

Puspita, D. T. W., & Komala, L. (2023). Effect of regional original income and balanced funds on capital expenditures with economic growth as moderating. Taxation and Public Finance, 1(1), 38–49. https://doi.org/10.58777/tpf.v1i1.159

Putri, ZM (2019). Flypaper Effect on Regional Original Income and Balancing Funds on Regional Expenditures in City Districts in East Java. Journal of Accounting Science and Research 9(1) https://doi.org/10.34128/jra.v1i1.7

Rahman, S., Suwitho, S., Oh, A., & Purwati, AA (2019). Commercialization of HighTech Innovations and Economic Growth in The Worldwide Most Innovative Countries

Rahmitasari, A. N and NF Fun. (2023). The influence of Regional Original Income, General Allocation Funds, and Special Allocation Funds on Capital Expenditures with economic growth as a moderating variable. Journal of Accounting Science and Research, 12 (8):1-23

Saputri, SH (2020). The Influence of Balancing Funds, Regional Expenditures, and Original Regional Income on Regional Financial Performance. Journal of Accounting Science and Research (9)1

Sari, Desak Gede. et al. (2017). The Influence of Economic Growth, Original Regional Income, Balancing Funds, and Excess Budget Financing on Capital Expenditure Allocations for Regencies/Cities throughout Bali. KRISNA Journal: Collection of Accounting Research. 9(1). https://doi.org/10.24176/agj.v1i1.3321

Simbolon, Yohannes Cosmas. et al. (2020). The Influence of PAD, SILPA, DAU, DAK and DBH on Capital Expenditure Allocation: Case Study of Regency/City Governments of North Sumatra Province, Bangka Belitung, Riau Islands and Bengkulu for the 2012-2018 Period. Journal of Socio Humanities Science. 4(2). https://doi.org/10.22437/jssh.v4i2.11546

Siregar, Baldric. (2017). Public Sector Accounting (Accrual-Based Local Government Financial Accounting). Second Edition. UPP STIM YKPN. Yogyakarta.

Sudika, I. K and IK Budiartha. (2017). The Influence of Regional Taxes, Regional Levies, General Allocation Funds, and Special Allocation Funds on Bali Province Capital Expenditures. Udayana University Accounting E-Journal. 21(2), ISSN: 2302-8556.

Syukur, A., Novianti, AS, & Karim, A. (2021). Financial Ratio Analysis of Pt. Semen Tonasa Before and After Joining the Semen Indonesia Group. International Journal of Engineering Technology Research & Management, 5(1), 11-17

Vanesha, Venny Tria, Rahmadi, Selamet & Parmadi. (2019) The influence of local revenue, general allocation funds, and special allocation funds on capital expenditure in districts/cities in Jambi Province, Journal of Economic Paradigm, 14(1), 27-36 https://doi.org/10.22437/paradigma.v14i1.6609

Wandira, Arbi Gugus. (2017). Pengaruh PAD, DAU, DAK, dan DBH terhadap Pengalokasian Belanja Modal. Accounting Analysis Journal. 2(1)

Wisnuwardana, G., A and Kurnia. 2023. The Effect of Regional Original Income, General Allocation Funds, Special Allocation Funds and Profit Sharing Funds on Capital Expenditures. Journal of Accounting Science and Research, 12(10):1-18