Factors Influencing Capital Expenditure in Regency/City Governments in East Kalimantan 2019-2023

Abstract

This study aims to analyze the influence of Local Taxes, Special Allocation Funds (DAK),
Revenue Sharing Funds (DBH), General Allocation Funds (DAU), and Area Size on Capital
Expenditure in district/city governments in East Kalimantan Province, as well as the role of
Economic Growth as a moderating variable in this relationship. The study employs a
quantitative approach using secondary data from a panel dataset of 10 districts/cities in East
Kalimantan for the period 2019–2023. Data were obtained from regional financial reports
(DJPK Ministry of Finance), BPS, and the Ministry of Home Affairs. Analysis was conducted
using Moderated Regression Analysis (MRA) with SPSS 25. The results show that Regional
Taxes and Regional Area directly have a positive and significant effect on Capital Expenditure.
DAK, DBH, and DAU do not have a significant effect. In terms of moderation, economic
growth does not act as a significant moderating variable in the relationship between Local
Taxes, DBH, DAU, and Regional Area Size on Capital Expenditure in East Kalimantan. The
only exception is DAK, where economic growth actually weakens its influence on Capital
Expenditure.