Capital expenditure is an important component of government spending in financing fixed assets that provide long-term benefits to the economy and public welfare, so the central government has set a minimum allocation of 40 percent of total regional expenditure each year. To date, many regions have high percentages of regional expenditure, but their capital expenditure allocations are still low and have not reached the minimum limit set, one of which is the Special Region of Yogyakarta. This situation results in a mismatch with the ideal absorption targets for each fiscal year period. Therefore, the objective of this study is to analyze the influence of local own revenue, balancing funds, budget surplus (SiLPA), and poverty on capital expenditure in the Regency/City of the Special Region of Yogyakarta Province from 2011 to 2023. The method used in this study is a quantitative method with panel data regression analysis. The results of the study indicate that, collectively, local revenue, balancing funds, budget surplus, and poverty significantly influence capital expenditure. Additionally, the variables of local own revenue and poverty do not have a significant partial effect on capital expenditure, while the variables of balancing funds and budget surplus (SiLPA) have a positive significant effect on capital expenditure.
Atikasari et al. (Tue,) studied this question.