The Effect Of Goods And Services Expenditure And Capital Expenditure On Financial Performance Through Income Regional Origin As A Moderating Variable In The Regional Government Of East Luwu District

Abstract

This research paper investigates the impact of government spending on goods and services, as well as capital expenditure, on the financial performance of the East Luwu Regency government, with local revenue serving as a moderating variable. The study highlights the fluctuating nature of spending on goods and services in East Luwu, which saw an increase in 2022 after experiencing variability in previous years. In contrast, capital expenditure and local revenue have shown consistent growth since 2021, achieving a realization rate of over 90% of the set targets. To analyze the relationships among these variables, the research employs various data analysis techniques, including classical assumption tests, multiple linear regression, and model suitability tests. The findings aim to provide empirical evidence on how local revenue can moderate the effects of both capital expenditure and spending on goods and services on financial performance  . The implications of this research are significant for both theoretical understanding and practical applications in local government financial management. By elucidating the interactions between these financial variables, the study contributes to the broader discourse on effective governance and resource allocation in regional administrations . Overall, this research underscores the importance of local revenue as a critical factor in enhancing the financial performance of local governments, particularly in the context of East Luwu Regency.