Title:
Effect on Locally Generated Revenue, Capital Expenditure, and Balancing Funds on Local Government Financial Performance

Authors:
Sigit Handoyo*, Reizka Putri Shefina, Indonesia

Abstract:

This study aims to examine and analyze the influence of locally generated revenue or PAD, capital expenditure, and balancing funds on the financial performance of local governments in Central Java Province for the 2018-2021 period. The research method used is multiple linear regression analysis. The results of the data analysis indicate that local revenue has a significant positive effect on local government financial performance. This indicates that local taxes and levies have a significant contribution to local revenue sources. Capital expenditure has no effect on local government financial performance. This indicates that capital expenditure spending is still not on target and therefore does not affect financial performance. Balancing funds have a significant negative effect on local government financial performance. This indicates that the government is still dependent on the central government in financing its regional activities.

DOI: https://doi.org/10.51505/IJEBMR.2026.10404