ABSTRACT
This research aims to find out the influence of Local Revenue (PAD), General Purpose Grant (DAU), and timeliness (KWP) of Annual Regional Budget (APBD) to capital expenditure on local government in East Java.Capital expenditure is a public sector expenditure in order to improve local government assets which benefits local public.
The secondary data of this research was populations in 38 Counties or Cities in East Java on 2010-2012. Prior to hypothesis testing using multiple regression analysis, checking the normality of the data and classical assumption test were done.
The results show that PAD, DAU, and timeliness of APBD influence capital expenditure significantly. The results of t-test show that PAD and DAU give positive significance influence to capital expenditure, whereas timeliness of APBD do not give significance influence to capital expenditure
Key Words: PAD, DAU, Timeliness (KWP) of Capital Expenditure