PENGARUH KINERJA KEUANGAN DAN ALOKASI BELANJA MODAL TERHADAP PERTUMBUHAN EKONOMI PADA PEMERINTAH (Studi Kasus di BPKD Kabupaten Bireuen)

The Influence of Financial Performance and Capital Expenditure Allocation on Government Economic Growth (A Case Study at BPKD of Bireuen Regency)

Abstract

In essence, regional financial performance and capital expenditure allocation significantly impact economic growth. Consequently, this study was conducted within the scope of Bireuen Regency. This is crucial for the implementation of regional autonomy, specifically regarding the optimization of local resource potential, fiscal independence, and the promotion of sustainable development. The study utilized secondary data—including Locally-Generated Revenue (PAD), the General Allocation Fund (DAU), the Special Allocation Fund (DAK), capital expenditure allocations, and economic growth figures covering the 2019–2023 period, obtained from the Regional Financial Management Agency (BPKD) and BPS Bireuen. Multiple linear regression and correlation analyses were employed. The results indicate that: (1) economic growth in Bireuen Regency fluctuated, peaking at 17.45% in 2023 and reaching a low of 1.53% in 2020. (2) Regional financial performance contributed positively to economic growth; specifically, the effectiveness of Locally-Generated Revenue (PAD) was rated as good, although the level of fiscal independence remained low. (3) Capital expenditure allocation played a significant role, particularly in 2023, when an increase in such spending appeared to drive a surge in economic growth.