Indonesia Conference Directory

This study aims to find out how the influence of fiscal balances on capital expenditure and economic growth in East Java Province in 2015-2017. This study uses data on local own source revenue (PAD), general allocation funds (DAU), special allocation funds (DAK), village funds (DD), capital expenditure and economic growth. The study was conducted using samples in 30 districts / cities in East Java Province in 2015-2017. By using multiple linear regression analysis tools and path analysis, the results of the first analysis show the influence of PAD and DAU on capital expenditure because basically the two funds are used for the provision of public facilities and infrastructure. Whereas DAK and DD have no effect on capital expenditure because the two funds are more used for financing / expenditure other than capital expenditure. While the results of the second analysis show that PAD, DAU and DD have a positive influence on economic growth, while DAK has a negative effect on economic growth and capital expenditure has a positive effect on economic growth.