The Impact of Locally-Generated Revenue, General Allocation Fund and Special Allocation Fund toward Public Welfare with Capital Expenditure as an Intervening Variable of Districts and Cities in Sumatera

Devita, Elga (2019) The Impact of Locally-Generated Revenue, General Allocation Fund and Special Allocation Fund toward Public Welfare with Capital Expenditure as an Intervening Variable of Districts and Cities in Sumatera. Diploma thesis, Universitas Andalas.

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Abstract

The vast difference between people’s welfare causes inequality among region, therefore human development must still be improved. Government policyalso contributes in raising the quality of human development index by increasing government spending on capital. This study aims to determine the effect of Locally-Generated Revenue, General Allocation Fund, and Special Allocation Fund on Public Welfare using Capital Expenditure as an Intervening Variable in Districts and Cities in Sumatera in 2015- 2017. The dependent variable in this research is the Public Welfare which is proxied by HDI (Human Development Index). The population in this study is all districts and cities in Sumatera. Sampling method used was purposive sampling and found the number of the selected sample is 420. Data in this research is secondary data released by BPS and DJPK. The technique of analyzing data are used in this study is a partial least square analysis techniques supported by WarpPLS version 4.0.The results of this research indicate that locally-generated revenueand special allocation fund affect the capital expenditure, while general allocation fund have no effect on capital expenditure.Then, locally-generated revenue, general allocation fund, and special allocation fund affect the public welfare and then general allocation fund.In addition special allocation do not affect the public welfare through the allocation of capital expenditure budget, while locally-generated revenue affect the public welfare through the allocation of capital expenditure.

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