DETERMINANTS OF CAPITAL EXPENDITURES AND THE IMPLICATIONS ON THE QUALITY OF GOVERNMENT FINANCIAL STATEMENTS IN SOUTHEAST WEST NUSA

Abstract

This study aimed to examine the effect of regional income, revenue-sharing, the general allocation fund and special allocation funds regency/city governments in Southeast West Nusa Tenggara for capital expenditures, and the implications of it on the quality of financial statements of the Government of Regency / City in NTB. The population in this study are all regency/city governments in NTB using secondary data that Local Government Financial States of the fiscal year 2009-2015. The results showed that the local revenues and the special allocation fund has a significant positive impact on capital expenditures and capital expenditures has a positive significant effect on the quality of financial statements of the Government of regency/city in NTB. Meanwhile, revenue-sharing and the general allocation fund in regency/city Government has no effect on capital spending. The implications of this research can be used as a basis for decisions about the management of local revenue to capital expenditure that can touch directly to community service, and can be used as consideration in the preparation of the Regional Budget (APBD).