The Influence Of Employee Expenditure, Capital Expenditure, And Population On The Increase Of Regional Original Revenue (Pad) In Takalar Regency

Abstract

This study aims to analyze the effect of Employee Expenditure, Capital Expenditure, and Population on Regional Original Revenue (PAD) in Takalar Regency. The background of this research is based on the importance of the role of regional finance and demographic factors in improving regional fiscal capacity sustainably. The research uses a quantitative approach with multiple linear regression analysis. The data used are secondary data from financial reports and statistical data of Takalar Regency for three years. Classical assumption tests including normality, multicollinearity, heteroscedasticity, and autocorrelation were performed to validate the model. The regression results show that simultaneously, Employee Expenditure, Capital Expenditure, and Population significantly affect PAD (p-value 0.000). Partially, Capital Expenditure and Population have a positive and significant effect on PAD, while Employee Expenditure does not. The most dominant variable affecting PAD is Capital Expenditure (Beta = 0.881). The study suggests that the local government should prioritize productive capital spending and utilize population potential as a basis for increasing PAD through economic empowerment and expansion of the local tax base.