ANALISIS DETERMINAN BELANJA MODAL DENGAN KEMANDIRIAN FISKAL SEBAGAI VARIABEL MODERASI (STUDI KASUS INDONESIA TAHUN 2014-2018)

Regional financial management, which was originally centralized, was now decentralized in carrying out the regional autonomy tasks. Local governments were given full authority to manage regional finances in accordance with the laws and regulations in effect. This study aims to analyze the factors that influence capital expenditure with fiscal independence as a moderating study for provincial governments in Indonesia in the 2014-2018 period. This research was conducted with quantitative methods using secondary data. The analysis technique used was panel data with the Moderated Regression Analysis (MRA) method. The purpose of using this method was to explain the effect of moderating variables to strengthen or weaken the relationship between the independent variable and the dependent variable. The variables used in this study were capital expenditure, local revenue (PAD), general allocation funds (DAU), excess budget calculation (SiLPA), population, and fiscal independence. Based on the results of the regression test, the relationship between fiscal independence as a moderator was able to strengthen PAD on capital expenditure. The relationship of fiscal independence was able to weaken the DAU on capital expenditure. The effect of fiscal independence cannot moderate the relationship between SiLPA and capital expenditure. Meanwhile, the population towards capital expenditure was strengthened by fiscal independence. This study recommended that local governments remain focused on increasing their regional fiscal independence. It would create social welfare which means that the better quality of human resources will have an impact on increasing local revenue sources and will be able to contribute to capital expenditure. The central government with different levels of regional independence certainly neededa fair share of the allocation of transfers to regions (DAU) according to the financial conditions of each region