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c. Capital Expenditures
Government Capital Expenditures refer to government spending on investment goods. This means spending on things that
last for a certain period of time. This may include investment in hospitals, schools, equipment furniture, IT-facilities, archive
facilities and roads. Capital Expenditures are divided into: 1
Public expenditures, these are expenditures those benefits can be enjoyed directly by the general public.
2 Apparatus expenditures, namely expenditures directly benefit
not enjoyed by the public, but it is felt directly by the apparatus.
d. Transfer expenditures
Transfer Expenditures are the expenditures for the transfer of money from the government to third parties without expecting
reward or gain refunds of the money transferred. The group consists of expenditures for:
1 Installment of loans.
2 Grants.
3 Reserve funds.
e. Unexpected Expenditures
Unexpected expenditures are the expenses incurred by local governments to finance the activities of unexpected and
extraordinary events. According to Nurlan 2008 states that unexpected expenditures are expenditures for activities are unusual
24 or not expected to recur like natural disasters and social disasters
unforeseen, including the refunds of excess revenues from previous years that have been closed.
Classification of expenditures by function for alignment and integration of financial management consists of:
1 Public Service;
2 Order and Peace;
3 The Economy;
4 The Environment;
5 Housing and Public facilities;
6 Health;
7 Tourism and culture;
8 Education, and
9 Social protects.
3. Original Local Government Revenues PAD
One of the main objectives of fiscal decentralization is creating local independence. In this perspective, the governments local
governments are expected to be able to explore the local financial resources, particularly through revenues Sidik, 2002. Dependence on
transfers from central government from year to year should be more limited. Oates, 1999 provide a fairly rational reason why the
government should reduce this dependency:
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