Analysis of the Influence of Regional Original Income from Taxes and Levies and Regional Expenditures on Public Infrastructure Development in Bojonegoro Regency in 2019-2024

Abstract

This study aims to analyze the effect of capital expenditure on public infrastructure development in Bojonegoro Regency during the period 2019–2024. Public infrastructure development is measured using the Human Development Index (HDI), a composite indicator reflecting health, education, and a decent standard of living. A quantitative approach is applied using multiple linear regression on time series data obtained from the Ministry of Finance (DJPK) and the Central Statistics Agency (BPS). The results show that capital expenditure has a positive and significant effect on HDI, while local revenue derived from taxes and user charges has a negative effect. These findings indicate that increases in local revenue have not been effectively allocated to sectors that directly improve the quality of life. The regression model satisfies the classical assumption tests and is statistically valid. The study concludes that optimizing capital expenditure and evaluating the use of local tax revenues are crucial to support sustainable and equitable public infrastructure development