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allocation is expected to affect the allocation of capital expenditures, as DAK tend to increase the fixed assets owned by the government to improve public services.
B. Previous Research
1. The Influence of Original Local Government Revenue PAD to the
Local Government Expenditure
The influence Study on the influence of Original Local Government Revenue PAD in Local Government Expenditure has been
done. Rivai 2013 showed the Original Local Government Revenue PAD influence an increasing number of Local Government Expenditure
BD in Gorontalo province. Mulyadi et al 2010 the result showed Original Local Government Revenue influence significant to Local
Government Expenditure BD in Bengkulu province. Djalil 2014: 286 argues with this requires the Original Local
Government Revenue PAD to optimize the resources area in order to increase revenue, especially revenue and local tax levies. This indicates a
strong indication, that if the PAD an area increases, the regions ability to perform Local Government Expenditure BD will also experience an
increase.
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2. The Influence of General Allocation Fund DAU to the Local
Government Expenditure
According to Adam,et al 2013 the General Allocation Fund DAU shows influence on direct expenditure allocation in Southeast
Sulawesi. And Mulyadi et al 2010 the result showed General Allocation Fund DAU influence significant to the Local Government Expenditure
in Bengkulu province. Rinzani et al 2011 the result showed General Allocation Fund influence to the Local Government Expenditure in South
Kalimantan. Djalil 2014: 145 suggests the lower the life expectancy index,
education index, and a decent standard of living index, the declining DAU obtained an area. Given the current fiscal needs to perform a public service
in local government getting bigger, then the local government should optimize local revenue sources as embodiments of fiscal independence.
Because if the General Allocation Fund DAU has decreased, it can cause a decrease in Local Government Expenditure BD. This indicates that the
local government expenditure behavior primarily of Local Government Expenditure BD influenced by the DAU.
3. The Influence of Special Allocation Fund DAK to the Local
