<![CDATA[This study analyses the impact of local taxes, local levies, general allocation funds (DAU), and special allocation funds (DAK) on capital expenditure in the Gerbangkertasusila region (two cities and five districts) during the period 2015–2024. The background of the research stems from the dynamics of regional autonomy and fiscal capacity disparities between regions, where Surabaya is the main driver of regional development while other regions are relatively limited. The research method uses a quantitative approach with panel data regression analysis (CEM, FEM, REM) as well as Chow, Hausman, and Lagrange Multiplier tests to determine the best model. The test results indicate local taxes, DAU, and DAK have a significantly impact on capital expenditure, while local levies have no effect. Simultaneously, the four variables together explain 89.15% of the variation in capital expenditure, emphasising the importance of combining local revenue and central transfers to support development. These findings align with federal fiscal theory and previous research, emphasising the need to optimise tax collection, enhance the effectiveness of local revenues, and manage DAU and DAK accountably to strengthen local fiscal capacity and improve public service quality.]]>
Copyrights © 2026
