The Effect of Regional Original Revenue (PAD), General Allocation Fund (DAU), and Special Allocation Fund (DAK) on Capital Expenditure in the Morowali Regency Government During 2016–2024

Abstract

This study examines the effect of Regional Original Revenue (PAD), General Allocation Fund (DAU), and Special Allocation Fund (DAK) on capital expenditure in the Morowali Regency Government from 2016 to 2024. Using a quantitative approach with multiple linear regression analysis, the research employs secondary time series data obtained from the Ministry of Finance of the Republic of Indonesia and the Morowali Regional Government. The findings indicate that PAD, DAU, and DAK each have a positive and significant impact on capital expenditure. The F-test result of 46.242 (greater than F-table 2.69) and an Adjusted R² value of 0.559 demonstrate that 55.9% of the variation in capital expenditure can be explained by the three independent variables. PAD exerts the strongest influence, implying that higher local revenue capacity enhances regional investment in infrastructure. The study concludes that optimizing local revenue sources and managing fiscal transfers effectively are essential to improving regional financial independence and sustainable development. Future research should include additional factors such as economic growth and governance transparency to provide a broader understanding of regional fiscal performance.