Title:
The Effect of Local Original Revenue and General Allocation Funds on Economic Growth With Capital Expenditure as an Intervening Variable (Central Kalimantan Study)

Authors:
Arif Arya Putranto, Fidiana, Fidiana, Indonesia

Abstract:

Economic growth is still an important sign of a country's prosperity. The Republic of Indonesia has abundant natural resources that must be effectively explored by the government because they are used to create wealth for the people. The important point is when the central government grants local governments the authority to manage their own resources via regional autonomy. As a result, the local government is given the opportunity to maximize and develop its local potential until public wealth is attained. The study employs a quantitative, scientific approach to managerial and economic issues. The data was transformed into critical information for Central Kalimantan provincial decision-makers. Furthermore, the population is made up of 14 districts/cities (14x7 years = 98 samples). As a result, locally owned source revenue and general allocation funds have a favorable and considerable impact on capital spending. Capital expenditure, on the other hand, has no or only a minor impact on economic growth. Furthermore, capital expenditure cannot mediate the impact of locally owned revenue on economic growth. Similarly, capital expenditure cannot offset the impact of general allocation funds on economic growth in Central Kalimantan from 2017 to 2023.

DOI: https://doi.org/10.51505/IJEBMR.2026.10311