The Influence of Central Government Transfers and Local Own-Source Revenue on Capital Expenditure in Regional Governments
DOI:
https://doi.org/10.38035/dijefa.v6i5.5365Keywords:
Central Government Transfers, local own-source revenue, capital expenditure, Fiscal Federalism, Flypaper EffectAbstract
This study aims to examine the effect of central government transfers and local own-source revenue on capital expenditure in 27 regencies and municipalities in West Java Province over the 2019–2023 period. The research employed a quantitative approach using multiple linear regression analysis, supported by statistical testing through t-test and F-test. The study used secondary data obtained from regional budget realization reports and the official website of the Directorate General of Regional Fiscal Balance, Ministry of Finance of the Republic of Indonesia. The findings indicate that both central government transfers and local own-source revenue have a positive and significant effect on capital expenditure. The adjusted R-squared value of 0.742 reveals that 74.2% of the variation in capital expenditure is explained by the two independent variables. These results suggest that increased local revenue enhances fiscal capacity, enabling local governments to finance long-term development projects without relying entirely on central transfers. Furthermore, the higher coefficient of local revenue compared to that of central transfers indicates that the flypaper effect did not occur during the study period. Overall, the findings affirm that the implementation of fiscal decentralization has begun to strengthen the fiscal independence of subnational governments, particularly in making more autonomous and productive capital expenditure decisions.
References
Agrawal, et al. (2024). Annual Review of Economics Fiscal Federalism in the Twenty-First Century. Annual Reviews, 429–454.
Alfasyah, et al. (2024). Analisis Pengaruh Kapasitas Fiskal Terhadap Belanja Modal di Provinsi Aceh. Anggaran: Jurnal Publikasi Ekonomi dan Akuntansi, 301–315.
Angellia, C. (2022). Pengaruh Pendapatan Asli Daerah, Dana Alokasi Umum, Dana Alokasi Khusus, dan Dana Bagi Hasil terhadap Belanja Modal. Yogyakarta.
Fausi, et al. (2025). Analisis Struktur Pendapatan Asli Daerah (PAD) dan Kemandirian Fiskal di Kabupaten Konawe. Jurnal Ekonomi (JE), 22–32.
Fiawati, M. M. (2023). Analysis of Changes in Financial Relationships in the Management of DAU and DAK Based on Law No. 33 of 2004 Concerning Financial Relations Between the Central Government and Regional Governments. Riwayat: Educational Journal of History and Humanities, 2375–2385.
Fikri, et al. (2020). Flypaper Effect Analysis on Regional Expenditure in East Java Province, Indonesia. Jurnal Ekonomi & Studi Pembangunan, 249–257.
Hartikayanti, et al. (2022). A Geographic Information System for mapping potential property tax. The Seybold Report. 1801-1814
Hendaris, et al. (2021). Flypaper effect assessment methods in the expansion of regional autonomy. Methodsx, 1-11.
Hendaris, R. B. & Siraz, R. (2020). Analysis of Factors Influencing The Accountability of Village Funds Management. Dinasti International Journal of Education Management and Social Science, 400-411.
Hidayati, N. R., & Bawono, A. D. B. (2020). Pengaruh Ruang Fiskal, Pendapatan Asli Daerah, Dana Alokasi Umum, Persentase Penduduk Miskin, dan Rata-rata Lama Sekolah terhadap Belanja Pendidikan. ECONBANK: Journal of Economics and Banking, 9–20.
Hutagalung, et al. (2023). Analisis Media Monitoring Citra Pemerintah dalam Pembangunan Infrastruktur di Indonesia. Jurnal Komunikasi, 212–227.
Junaedi dan Masdjojo. (2022). Penelusuran Fly Paper Effect pada Belanja Operasi dan Belanja Modal Pemerintah Daerah Kabupaten/Kota di Provinsi Jawa Tengah. Jurnal Ekonomi dan Bisnis, 110–127.
Legler, T. (2020). Advancing Autonomy? Chinese Influence on Regional Governance in Latin America. International Political Economy Series, 27–53.
Mendra, et al. (2024). Flypaper Effect in the Allocation of Regional Expenditure in Regency/City in West Sumatra Province. Journal of Humanities, Social Sciences and Business, 167–175.
Ningsih, et al. (2021). Analisis Flypaper Effect dari Dana Alokasi Umum (DAU), Pendapatan Asli Daerah (PAD) dan Satuan Kerja Perangkat Daerah (SKPD) terhadap Belanja Daerah Kabupaten/Kota di Provinsi Jawa Timur Tahun 2015–2019. E-JRA, 58–68.
Nurrahman, et al. (2024). Local Finance and Regional Expenditures: Is There a Flypaper Effect in Indonesia?. KnE Social Sciences, 62–84.
Pramesti & Hendaris. (2025). The Effect of Capital Expenditure on Financial Performance with Local Revenue as a Mediating Variable. DIJEFA: Dinasti International Journal of Economics, Finance and Accounting, 450–459.
Purnawati, A., & Making, L. S. (2021). Analisis Flypaper Effect pada Belanja Modal Kabupaten/Kota di Provinsi Nusa Tenggara Timur (NTT). Jurnal Manajemen dan Perbankan, 51–65.
Purwanto, et al. (2022). Capital Expenditure Allocation Analysis of Local Governments. International Journal of Science, Technology & Management, 453–460.
Sania, N. (2024). Dampak Dana Transfer dan Flypaper Effect Pendapatan Asli Daerah pada Belanja Modal di Kabupaten/Kota se-Sulawesi Tengah. Jurnal Aplikasi Akuntansi, 247–261.
Sema, L. J., & Riduwan, A. (2021). Analisis Flypaper Effect Pendapatan Asli Daerah, Dana Alokasi Umum, dan Dana Alokasi Khusus terhadap Belanja Modal. Jurnal Ilmu dan Riset Akuntansi, 1–22.
Septianingrum, et al. (2025). Local Expenditure Financing Response in Regencies and Municipalities in Indonesia: Analysis of the Flypaper Effect Phenomenon. Journal of Accounting and Investment, 1–17.
Winarso, E. (2023). Pengaruh Belanja Langsung dan Belanja Tidak Langsung terhadap Kemiskinan. Jurnal Bisnis, Ekonomi, dan Sains, 567–572.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 Akhmad Syaifullah, Romli Romli
This work is licensed under a Creative Commons Attribution 4.0 International License.
Authors who publish their manuscripts in this journal agree to the following conditions:
- The copyright on each article belongs to the author(s).
- The author acknowledges that the Dinasti International Journal of Economics, Finance & Accounting (DIJEFA) has the right to be the first to publish with a Creative Commons Attribution 4.0 International license (Attribution 4.0 International (CC BY 4.0).
- Authors can submit articles separately, arrange for the non-exclusive distribution of manuscripts that have been published in this journal into other versions (e.g., sent to the author's institutional repository, publication into books, etc.), by acknowledging that the manuscript has been published for the first time in the Dinasti International Journal of Economics, Finance & Accounting (DIJEFA).
