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Original Research

THE RELATIONSHIP OF REGIONAL OWN SOURCE REVENUE AND GENERAL ALLOCATION FUNDS TO CAPITAL EXPENDITURE IN MALUKU PROVINCE: A REGENCY/CITY CASE STUDY

MUHAMMAD BUGIS 1, ALI TUTUPOHO 2, FREDY HENDRY LOUHENNAPESSY 3, and DJUFRI RAYS PATTILOUW 4.

Vol 19, No 02 ( 2024 )   |  Author Affiliation: Department of Economic and Business, Universitas Pattimura, Ambon, Maluku 1,2,3,4.   |   Licensing: CC 4.0   |   Pg no: 410-427   |   Published on: 12-02-2024

Abstract

This research paper explores the dynamic interplay between Regional Own Source Revenue (PAD) and General Allocation Funds (DAU) and their impact on capital expenditure in Maluku Province, Indonesia. The study focuses on a case study approach involving various provincial regencies and cities. It investigates the extent to which PAD and DAU influence the allocation and utilization of resources for capital projects, shedding light on the fiscal management and development priorities at the local level. Through a combination of quantitative analysis and qualitative insights, this study aims to understand better the financial mechanisms that drive infrastructure and development investments in Maluku Province. The findings have significant implications for regional economic growth and policy decisions in Indonesia and offer valuable lessons for other regions facing similar challenges in balancing fiscal resources for sustainable development.


Keywords

Regional Economic Growth, Development Investments, Fiscal Management, Policy Decisions, Maluku Province.