How to Optimize the Quality of Capital Expenditure?

his study aims to examine the impact of local own-source revenue, transfer to local and village funds, and other revenue towards capital expenditure. Thisstudy used quantitative method. By applying multiple regression to evaluate the proposed model with a sample of 33 provincial government in Indonesia, this study confirms the impact of local own-source revenue and other revenue on capital expenditure, but not transfer to local and village funds. This study provides an opportunity for provincial government to increase their local revenue through the development of local own-source revenue and other revenue. To improve local revenue, this study suggests that provincial government must provide prompt and accurate service. It is also important for provincial government to keep the operational government compliant with the good governance