September 10, 2025

Analysis of the Contribution of Regional Taxes, General Allocation Funds, and Special Allocation Funds on Local Government Capital Expenditure

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Regional taxes and general allocation funds positively impact capital expenditure, enhancing local services.
Special allocation funds lack significant influence on capital expenditure due to strict allocation criteria.
Data analysis using multiple linear regression reveals the need for better fund management in Central Java.
Optimizing tax revenues is critical for local governments to improve infrastructure and public services.

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Analysis finds regional taxes and general allocation funds enhance capital expenditure in Central Java, suggesting improved tax collection systems.

Lathifi et al. (2025) studied this question.

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Analysis finds regional taxes and general allocation funds enhance capital expenditure in Central Java, suggesting improved tax collection systems.