Title:
CAPITAL EXPENDITURE’S ANTECEDENTS: PROOF OF THE PUBLIC SECTOR IN EAST JAVA

Authors:
Nanda Widaninggar, Murti Sumarni, Saiful Amin, Nurshadrina Kartika Sari, Indonesia

Abstract:

The aim of this research was to find out the evidence of the impact of Local Governments financial performance, by proxy of Fiscal Space Ratio to the Capital Expenditure Allocation, with Accountability as a driver variable. This research was a deep study of the impact of Capital Expenditure on the Economic Growth.  This research conducted in Situbondo Local Government and was executed by Qualitative method, this research was done by Thematic Content Analysis. The result Showed that the Capital Expenditure Allocation was not influenced by Fiscal Space Ratio, nor the Financial Performance, and Also the Accountability could not be a driving variable between Fiscal Space Allocation Ratio and Capital Expenditure. Besides, the Economic Growth was influenced by the Capital Expenditure Allocation. The vast literature on Fiscal Space Ratio and Accountability impact of dealing with the investment decision making of Capital Expenditure Allocation had not been well-researched in Indonesia. This research was expected to give a contribution to the Local Government budgeting in their decision making. This study only found the results in the Local Government Situbondo, cannot be represented to all aspects in Indonesian Public Sectors