International Journal of Economics Development Research (IJEDR)
Vol. 4 No. 1 (2023): International Journal of Economics Development Research (IJEDR)

Local Original Revenue, General Allocation Fund and Number of Population to District/City Capital Expenditure in North Sumatra Province

Permata Selly Pasa Hartiah (Universitas Muslim Nusantara Al-Washliyah, Indonesia)
Junita Putri Rajana Harahap (Universitas Muslim Nusantara Al-Washliyah, Indonesia)



Article Info

Publish Date
15 Jun 2023

Abstract

In the District/City Budget in North Sumatra Province, the allocation of Capital Expenditure is still relatively small when compared to other regional expenditures. The contribution of Regional Original Revenue to Regional Revenue is still not optimal. Where regional revenues are still dominant in the General Allocation Fund. This explains that Regional Original Revenue has not been able to finance its Capital Expenditure. Capital Expenditure is budgeted for public services in the form of facilities and infrastructure where the Number of Population in Districts / Municipalities in North Sumatra Province continues to increase while Capital Expenditure fluctuates. This study aims to determine the effect of Regional Original Revenue, General Allocation Fund and Number of Population on District / City Capital Expenditure in North Sumatra Province. This study uses secondary data obtained from the Directorate General of Financial Balance and the Central Statistics Agency in 2020-2021. The population in this study is 33 regencies/cities in North Sumatra Province during 2020-2021. The sampling technique used is saturated sampling. The data analysis method uses Descriptive Statistics, Normality Test, Multiple Linear Regression and Hypothesis Test. The results showed that partially Regional Original Revenue affects Capital Expenditure, General Allocation Fund affects Capital Expenditure, and Number of Population affects Capital Expenditure. The results of test f simultaneously show that Regional Original Revenue, General Allocation Fund and Number of Population together affect District / City Capital Expenditure in North Sumatra Province.

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Journal Info

Abbrev

ijedr

Publisher

Subject

Economics, Econometrics & Finance Social Sciences

Description

IJEDR focuses on economics, innovation, and investment. Dedicated to enhancing economics development a country, regional and the world in general. IJEDR invites papers on Economics field (Economic growth, Monetary and fiscal policy effect, Innovation practices, Innovation impact, Corporate finance, ...