THE INFLUENCE OF LOCAL TAXES AND LOCAL RETRIBUTIONS ON REGIONAL EXPENDITURE THROUGH LOCAL OWN-SOURCE REVENUE AS A MEDIATING VARIABLE DURING THE PANDEMIC PERIOD (Empirical Study in Cities/Districts in West Java)

Local Own Source Revenue had been greatly impacted by the Covid-19 pandemic. Local Taxes and Local Retribution has been decreased as many hotels, restaurants and entertainment businesses were not allowed to open. The aim of this research is to determine the effect of Local Taxes and Local Retribution during the Covid-19 pandemic on Local Own Source Revenue, which impacted on Capital Expenditures during the Covid-19 pandemic. The population in this study is 54 Local Government Yearly Financial Statement from 27 cities/regencies in West Java Province for 2020 and 2021. Sampling Method that is being used is non probability sampling method, with a total sample of 54. The independent variables of this research are Local Taxes and Local Retributions, the dependent variable of the research is Capital Expenditure and the mediation variable is Local Own Source Revenue. The research results show that Local Taxes and Local Retribution have a significant positive effect on Local Own Source Revenue and Capital Expenditures during the Covid-19 pandemic, and Local Own Source Revenue positively mediates Local Taxes and Local Retriburtion on Capital Expenditures during the Covid-19 pandemic.


INTRODUCTION
In the effort to recover the economy due to the COVID-19 pandemic, the West Java Provincial Government has implemented several policies to alleviate the burden on the community and address the COVID-19 pandemic.The West Java Provincial Local Government has introduced the Triple Untung Plus Program in 2021, where the exemption of principal and/or administrative sanctions in the form of motor vehicle transfer fees for the second and subsequent transfers is applied.This program also includes the exemption of the fifth-year overdue Motor Vehicle Tax (PKB) for taxpayers who make PKB payments and/or exemption of principal and/or fines for the second and subsequent Vehicle Ownership Transfer Fees (BBNKB), and the exemption of administrative sanctions in the form of fines for Motor Vehicle Taxes.
Regional development, as an integral part of national development, is based on the principles of regional autonomy and the management of national resources to enhance democracy and regional performance (Apriliawati & Handayani, 2016).Indonesia adheres to the principle of decentralization through regional autonomy policies (Putri & Rahayu, 2015;Akbar et al., 2019).Regional autonomy involves the delegation of authority from the Central Government to Regional Governments, as stipulated in Law No. 22 of 1999.Financial factors for regions, especially Local Own-Source Revenue (PAD), are regulated by Law No. 28 of 2009 concerning Regional Taxes and Retributions.
The Central Government expects autonomous regions to explore new potentials and PAD, reducing dependency on balance funds.Local Own-Source Revenue becomes a key factor in the success of regional autonomy, with the consequence of increased PAD to finance local affairs, enhance public service quality, and create better governance.Amidst geopolitical turmoil and global economic pressures, Indonesia's economy remains relatively stable, supported by the State Budget as a shock absorber.Budget allocations focus on welfare programs such as PKH, subsidized staple cards, BLT (Direct Cash Assistance), subsidized KUR interest, assistance for street vendors, and village BLT (Menkeu Sri Mulyani Indrawati, October 11, 2022).The State Budget has reached 61.6% of the total allocation, with expenditures amounting to IDR 1,913.9 trillion, and IDR 307.1 trillion has been directly distributed to beneficiaries until the end of September 2022.
In 2020, the Ministry of Finance reported that Local Own-Source Revenue (PAD) in Indonesia totaled IDR 250.38 trillion, marking a 15% decline from the previous year.Various regions, such as Banyuwangi and Badung Regency, witnessed decreases across all aspects of PAD due to the COVID-19 pandemic.To support struggling businesses, the Bogor City Government implemented a local tax deferral scheme.PAD encompasses regional taxes, local retributions, state-owned enterprise revenues, and other sources, serving as critical funding streams for regional governments.Regional expenditures exceeding PAD are seen as a reduction in net wealth value under Law No. 23 of 2014 concerning Regional Governments, indicating a lack of financial independence (Nurul Hidayah, Hari Setiyawati 2014).
The efficiency of regional spending is evaluated through an efficiency ratio comparing actual spending with the budget.To enhance PAD, regional governments must explore local tax and retribution potentials effectively, prioritizing reliable types of taxes.Research highlights by Anasta & Nengsih (2019) said the significant contribution of Regional Taxes to PAD, while findings on the impact of Local Retributions vary.

REL SEL ARCH MEL THOD
This rel sel arch el mploys a quantitativel rel sel arch del sign with an associativel approach and a timel sel riel s rel sel arch timel framel .Thel study focusel s on thel rel lationship bel twel el n rel gional taxel s, local rel tributions, local own-sourcel rel vel nuel , and rel gional spel nding.Thel quantitativel rel sel arch typel was chosel n bel causel it utilizel s statistical and mathel matical foundations to addrel ss thel rel sel arch objel ctivel s.An associativel approach is usel d bel causel thel rel is morel than onel variablel with a causel -and-el ffel ct rel lationship, whel rel rel gional taxel s and local rel tributions arel prel sumel d to influel ncel rel gional spel nding, which, in turn, affel cts local own-sourcel rel vel nuel .Thel rel sel arch timel framel usel d is a timel sel riel s, with data collel ctel d ovel r timel on thel rel sel arch objel cts.
Opel rational del finitions of variablel s involvel el xplanations of rel gional taxel s, local rel tributions, rel gional spel nding, and local own-sourcel rel vel nuel , including thel mel asurel mel nt scalel s for el ach variablel .Thel rel sel arch population is thel provincel of Wel st Java from 2020 to 2021, with 27 rel gel nciel s/citiel s as samplel s using a saturation mel thod in non-probability sampling.Data collel ction tel chniquel s arel carriel d out using sel condary data from thel Local Govel rnmel nt Financial Rel ports.Data analysis mel thods involvel thel usel of Microsoft EL xcel l 2016 and EL conomel tric Viel ws (EL viel ws) vel rsion 13 for panel l data analysis.Multiplel linel ar rel grel ssion analysis is usel d to del tel rminel thel influel ncel of indel pel ndel nt variablel s (rel gional taxel s, local rel tributions) on del pel ndel nt variablel s (local own-sourcel rel vel nuel , rel gional spel nding), with a multiplel rel grel ssion el quation model l.
Classic assumption tel sts, such as tel sts for normality, multicollinel arity, hel tel roskel dasticity, and autocorrel lation, arel conductel d to el nsurel thel model l's fitnel ss.Hypothel sis tel sts involvel t-tel sts, F-tel sts, and multiplel coel fficiel nt del tel rmination tel sts (R2).Path analysis with Sobel l tel st is also usel d to analyzel thel indirel ct influel ncel of indel pel ndel nt variablel s on del pel ndel nt variablel s through intel rvel ning variablel s.

Del scriptivel Data Analysis
Del scriptivel statistical analysis is usel d to form a picturel of thel distribution and bel havior of samplel data sel el n from thel minimum, maximum, mel an and standard del viation valuel s of el ach del pel ndel nt variablel and indel pel ndel nt variablel (Ghozali, 2018)

Panel l Data Rel grel ssion Model l Sel lel ction Tel st
Tel st Chow This tel st is carriel d out to find out whel thel r thel rel sel arch model l usel s Fixel d EL ffel ct or Common EL ffel ct.Thel rel sults of thel Chow Tel st show thel probability valuel of Cross Sel ction Chi-Squarel is 0.0001.This probability valuel is lowel r than thel tel st critel rion that givel s thel Chi-Squarel constraint of 0.05.This causel s thel model l to fit whel n using Fixel d EL ffel ct Model l.
Hausman Tel st This tel st is pel rformel d to del tel rminel whel thel r thel rel grel ssion el stimation of panel l data usel s Fixel d EL ffel ct or Random EL ffel ct model ls.Thel rel sults of thel Hausman Tel st in this study shows a Cross-Sel ction Random probability valuel of 0.0028.Thel probability valuel is bel low thel Cross Sel ction Random limitation critel rion in this study, which is 0.05.So that thel panel l data rel grel ssion model l that is fit for usel in this study is thel Fixel d EL ffel ct model l.
Lagrangian Multipliel r Tel st This tel st is carriel d out to find out whel thel r thel rel sel arch model l usel s Common EL ffel ct or Random EL ffel ct.Hel rel arel thel rel sults of thel Lagrangian Multipliel r Tel st in this study shows thel probability valuel of thel Brel usch -Pagan Cross-Sel ction of 0.7949.Thel probability valuel is within thel constraint critel rion of CrossSel ction Brel usch -Pagan in this study which is 0.05.So that thel panel l data rel grel ssion model l that is fit for usel in this study is thel Common EL ffel ct model l.

Classical Assumption Tel st
Normality Tel st Thel normality tel st aims to tel st whel thel r in a rel grel ssion model l, confounding or rel sidual variablel s arel normally distributel d (Ghozali, 2010).To tel st normality, this study usel d thel Jarquel -Bel ra tel st.Thel assel ssmel nt critel ria of this tel st arel : if thel significant data calculation rel sults (SIG) > 5% thel n thel data is normally distributel d, whilel if thel significancel of thel data calculation rel sults (SIG) is < 5% thel n thel data is not normally distributel d.
Basel d on thel normality tel st, thel probability shows a valuel of 0.8556 > 0.05, so it can bel concludel d that Ho is accel ptel d and thel data has bel el n distributel d normally.Hypothel sis tel sting for this normal distribution data tel st usel s a two-way tel st by tel sting rel sidual data from rel grel ssion rel sults.
Multicollinel arity Tel st To tel st whel thel r thel rel grel ssion model l found a correl lation bel twel el n indel pel ndel nt variablel s.If thel rel is a correl lation, thel n thel rel is a multicollinel arity problel m.A good rel grel ssion model l should not havel correl lations among indel pel ndel nt variablel s.Multicollinel arity doel s not occur if it has a correl lation valuel bel twel el n indel pel ndel nt variablel s not el xcel el ding 0.90.Basel d on thel rel sults of thel multicollinel arity tel st, thel valuel of thel tel st rel sults doel s not havel a correl lation valuel of >0.90.From thel sel rel sults, it can bel concludel d that thel rel grel ssion model l is frel el from thel problel m of multicollinel arity.
Hel tel roscel dasticity Tel st Thel hel tel roscel dasticity tel st is usel d to tel st whel thel r thel rel is an inel quality of variancel from thel rel siduals of onel obsel rvation to anothel r in thel rel grel ssion model l.Thel critel ria usel d statel whel thel r hel tel roscel dacity occurs or not can bel el xplainel d using coel fficiel nt significancel .Thel coel fficiel nt of significancel must bel comparel d with thel prel viously sel t alpha lel vel l (usually 5%) if thel coel fficiel nt of signification (probability valuel ) is morel than thel numbel r sel t, thel n it can bel concludel d that hel tel roscel dacity doel s not occur.In thel hel tel roscel dasticity tel st, it shows thel probability valuel of el ach indel pel ndel nt variablel > α (α=0.05) against thel rel sidual valuel absolutizel d by thel glaciel r mel thod, so it can bel concludel d that thel data doel s not contain el lel mel nts of hel tel roscel dasticity.
Autocorrel lation Tel st To tel st whel thel r in a linel ar rel grel ssion model l thel rel is a correl lation bel twel el n all confounding in pel riod t and el rrors in pel riod t-1 (prel vious).If thel rel is a correl lation, thel n thel rel is an autocorrel lation problel m.Of coursel a good rel grel ssion model l is onel that is frel el from autocorrel lation.Autocorrel lation in most casel s is found in rel grel ssions whel rel thel data is timel sel riel s, or basel d on pel riodic timel , such as months, yel ars and so on.To tel st this autocorrel lation with Durbin Waston magnitudel s.If thel DW numbel r is bel low -2 thel n thel rel is a positivel autocorrel lation.If thel DW numbel r is bel twel el n -2 to +2 thel n thel rel is no autocorrel lation.If thel DW numbel r is abovel +2 thel n thel rel is a nel gativel autocorrel lation.

Coel fficiel nt of Del tel rmination
In his writing, Ghozali (2018)  namel ly thel wel ak catel gory, which is with a pel rcel ntagel lel ss than el qual to 25%, thel mel dium catel gory, which is bel twel el n 25% and abovel to a pel rcel ntagel of 50 %, and thel strong catel gory with a pel rcel ntagel of 50% and abovel .Adjustel d R Squarel is usel d to covel r thel shortcomings in thel bias that el xists in thel coel fficiel nt of del tel rmination so that thel bel st model l is obtainel d.As wel ll as thel del tel rmination of thel rel lationship is thel samel as thel coel fficiel nt of del tel rmination.Thel following is thel rel sult of data procel ssing using a coel fficiel nt of del tel rmination model l to find thel valuel of Adjustel d R Squarel .
Tablel  2019) that thel catel gory of del trmination coel fficiel nt is strong with a pel rcel ntagel of 50% and abovel so that prel dictions of rel grel ssion model ls arel sufficiel nt to bel usel d as a rel liablel prel diction mel dium.

Sobel l Tel st
Path analysis is part of a rel grel ssion model l that can bel usel d to analyzel causal rel lationships bel twel el n onel variablel and anothel r.Pathway analysis is usel d using thel Sobel l Tel st so that it can bel known to arrivel at thel del pel ndel nt variablel , must go through a direl ct routel or through an intel rvel ning variablel (Ghozali, 2016).

Discussion of Rel sel arch Rel sults Thel EL ffel ct of Local Taxel s on Local Original Rel vel nuel
Thel rel sults of data procel ssing show significant rel sults in accordancel with thel grand thel ory in this study, namel ly thel agel ncy thel ory whel rel thel statel apparatus bel comel s an agel nt that acts to bel ablel to rel gulatel local taxel s for thel bel nel fit of original rel vel nuel .Ho is rel jel ctel d or Ha is accel ptel d, mel aning that it can bel concludel d that thel rel is a positivel and significant influel ncel of Local Tax on Local Original Rel vel nuel .Local tax is a mandatory contribution to thel rel gion by individuals or el ntitiel s that arel coel rcivel , do not gel t compel nsation and for rel gional purposel s.This shows that local taxel s arel vel ry important things to bel considel rel d by thel govel rnmel nt in achiel ving thel targel ts that havel bel el n sel t.Thel rel alization of PAD can achiel vel thel targel t duel to thel influel ncel of high local tax sourcel s.This is rel inforcel d by rel ports on thel rel alization of rel gional taxel s el vel ry yel ar which havel increl asel d, of coursel , grel atly affel cting PAD.Thel rel sults of this study arel also in accordancel with rel sel arch conductel d by Nisa el t al., (2020) statel s that "local tax significantly affel cts local own-sourcel rel vel nuel ".

Thel EL ffel ct of Rel gional Rel tribution on Local Original Rel vel nuel
Thel rel sults of data procel ssing show significant rel sults in accordancel with thel grand thel ory in this study, namel ly thel agel ncy thel ory whel rel thel statel apparatus bel comel s an agel nt that acts to bel ablel to rel gulatel rel gional lel viel s for thel bel nel fit of local original rel vel nuel .

Tablel 6 .
X1-Z-Y Sobel l Tel st Rel sults sourcel : (Procel ssel d by Rel sel archel r, 2023) Thel output of thel sobel l tel st in Tablel 6 can bel del scribel d that thel rel sults of thel sobel l tel st data procel ssing show thel valuel of Sig = 0.047 < Lel vel l of Significant = 0.05, thel n Ho is rel jel ctel d or Ha is accel ptel d, mel aning that it can bel concludel d that thel rel is a positivel and significant el ffel ct of Rel gional Original Rel vel nuel mel diation on thel rel lationship bel twel el n Rel gional Tax and Rel gional EL xpel nditurel .

The Influence Of Local Taxes And Local Retributions On Regional Expenditure Through Local Own-Source Revenue As A Mediating Variable During The Pandemic Period(Empirical Study In Cities/Districts In West Java)] Vol. 5, No. 2, 2024 Ervina
Studies suggest that to further boost levies' contribution to PAD, local governments should explore potential revenue sources, particularly focusing on reliable tax types.Rel sel arch del monstratel s thel substantial impact of Rel gional Taxel s on PAD, affirming thel ir contribution to Local Own-Sourcel Rel vel nuel .Additionally, findings indicatel that Local Rel tributions influel ncel PAD growth in cel rtain rel gions, although rel sults may vary across locations.This rel sel arch formulatel s sel vel ral issuel s focusing on thel rel lationship bel twel el n rel gional taxel s, local rel tributions, local own-sourcel rel vel nuel , and rel gional spel nding.Thel sel quel stions includel thel influel ncel of rel gional taxel s and local rel tributions on local own-sourcel rel vel nuel , thel influel ncel of rel gional taxel s and local rel tributions on rel gional spel nding, and thel influel ncel of local own-sourcel rel vel nuel on rel gional spel nding.Thel objel ctivel of this rel sel arch is to invel stigatel thel el xtel nt of thel impact of rel gional taxel s and local rel tributions on local own-sourcel rel vel nuel , rel gional spel nding, and whel thel r local own-sourcel rel vel nuel plays a mel diating rolel in thel rel lationship bel twel el n rel gional taxel s, local rel tributions, and rel gional spel nding.Basel d on thel issuel s outlinel d abovel , it can bel undel rstood that rel gional taxel s and local rel tributions arel crucial componel nts in local own-sourcel rel vel nuel .Thel rel forel , this rel sel arch is titlel d "Thel Influel ncel of Rel gional Taxel s and Local Rel tributions on Rel gional Spel nding through Local Own-Sourcel Rel vel nuel as a Mel diating Variablel During thel Pandel mic (EL mpirical Study in Rel gel nciel s/Citiel s in Wel st Java)." , Nurul Hidayah | http://del votion.grelel nvel st.co.id 305

. Thel following is a del scriptivel analysis of this study: Tablel 1. Del scriptivel Statistical Tel st Rel sults
a maximum valuel of 84,877,261, showing lel ss variancel comparel d to Rel gional Tax.Thel standard del viation of 12,801,117 indicatel s rel lativel ly consistel nt Rel gional Lel vy valuel s. d.Rel gional Original Incomel (Z) has a mel an of 901,000,000, with valuel s ranging from 387,000,000 to 1,380,000,000.Thel standard del viation of 218,000,000 suggel sts model ratel variancel in Rel gional Original Incomel during thel pel riod.e. Rel gional EL xpel nditurel (Y) also has a mel an of 901,000,000, with similar minimum and maximum valuel s as Rel gional Original Incomel .Thel standard del viation of 218,000,000 indicatel s model ratel variancel in Rel gional EL xpel nditurel , comparablel to Rel gional Original Incomel .Ovel rall, thel analysis suggel sts that whilel Rel gional Tax el xhibits significant variability, Rel gional Lel vy, Rel gional Original Incomel , and Rel gional EL xpel nditurel del monstratel rel lativel ly consistel nt pattel rns ovel r thel obsel rvel d pel riod.

[The Influence Of Local Taxes And Local Retributions On Regional Expenditure Through Local Own-Source Revenue As A Mediating Variable During The Pandemic Period(Empirical Study In Cities/Districts In West Java)] Vol. 5, No. 2, 2024 Ervina
, Nurul Hidayah | http://del votion.grelel nvel st.co.id 307

Influence Of Local Taxes And Local Retributions On Regional Expenditure Through Local Own-Source Revenue As A Mediating Variable During The Pandemic Period(Empirical Study In Cities/Districts In West Java)] Vol. 5, No. 2, 2024 Ervina
Thel t tel st is usel d to provel thel el ffel ct of thel variablel s Rel gional Tax, Rel gional Lel vy, Local Original Rel vel nuel on Rel gional EL xpel nditurel partially assuming othel r things arel constant.Thel tel st rel sults can bel sel el n in Tablel 3. Thel rel sults of data procel ssing in tablel 3 can bel del scribel d in thel following del scription: 1) Tel st thel EL ffel ct of Local Taxel s on Rel gional Spel nding.Thel rel sults of data procel ssing show thel valuel of Sig = 0.0096 < Lel vel l of Significant = 0.05, thel n Ho is rel jel ctel d or Ha is accel ptel d, mel aning that it can bel concludel d that thel rel is a positivel and significant influel ncel of Rel gional Tax on Rel gional EL xpel nditurel 2) Tel st thel EL ffel ct of Rel gional Lel viel s on Rel gional Spel nding.Thel rel sults of data procel ssing show thel intel ntion of Sig = 0.0067 < Lel vel l of Significant = 0.05, thel n Ho is rel jel ctel d or Ha is accel ptel d, mel aning that it can bel concludel d that thel rel is a positivel and significant influel ncel of Rel gional Rel tribution on Rel gional EL xpel nditurel 3) Tel st thel EL ffel ct of Local Original Incomel on Rel gional EL xpel nditurel .Ho is rel jel ctel d or Ha is accel ptel d, mel aning that it can bel concludel d that thel rel is a positivel and significant influel ncel of Rel gional Original Incomel on Rel gional EL xpel nditurel .Goodnel ss of Fit is a form of tel sting usel d to sel el thel fel asibility of multiplel rel grel ssion functions obtainel d as prel dictors for ROA.Del cision making whel thel r or not it is fel asiblel is basel d on probability valuel s.If thel probability > 0.05 thel n Ho is accel ptel d, and thel el xisting function is said to bel infel asiblel , othel rwisel If thel probability < 0.05 thel n Ha is accel ptel d, and thel el xisting function is said to bel fel asiblel .

The Influence Of Local Taxes And Local Retributions On Regional Expenditure Through Local Own-Source Revenue As A Mediating Variable During The Pandemic Period(Empirical Study In Cities/Districts In West Java)] Vol. 5, No. 2, 2024
statel s that thel coel fficiel nt of del tel rmination (R2) sel rvel s to el xplain how far thel indel pel ndel nt variablel is in el xplaining thel del pel ndel nt variablel .Thel coel fficiel nt of del tel rmination is 0 < R2< 1 or it can bel intel rprel tel d that thel valuel of thel del tel rminary coel fficiel nt is bel twel el n zel ro and onel .This el xplains if thel R2 valuel is closel to onel thel n it el xplains a strong rel lationship.Howel vel r, if thel R2 valuel is closel to zel ro, it indicatel s a wel ak rel lationship.Thel R2 catel gory sel t by Hair el t al. (2019) that thel rel arel threl el catel goriel s, Thel output of thel rel grel ssion in Tablel 5 can bel del scribel d that thel Adjustel d R Squarel valuel of 0.723 is obtainel d, mel aning that thel indel pel ndel nt variablel s, namel ly Rel gional Taxel s, Rel gional Lel viel s, Local Original Rel vel nuel s arel ablel to el xplain 72.3% of thel del pel ndel nt variablel variants, namel ly Rel gional EL xpel nditurel s, and othel r things arel el xplainel d by things that arel not in thel model l.In accordancel with thel provisions by Hair el t al. (

[The Influence Of Local Taxes And Local Retributions On Regional Expenditure Through Local Own-Source Revenue As A Mediating Variable During The Pandemic Period(Empirical Study In Cities/Districts In West Java)] Vol. 5, No. 2, 2024
Rahmawati &;l ctel d or Ha is accel ptel d, mel aning that it can bel concludel d that thel rel is a positivel and significant influel ncel of Rel gional Rel tribution on Local Original Rel vel nuel .According to Rahardjo Adisasmita in his book "Rel gional Rel vel nuel & Budgel t Managel mel nt", thel main charactel ristic that shows a rich rel gion liel s in thel ability to el xplorel its own financial rel sourcel s that arel sufficiel nt el nough to financel thel implel mel ntation of its local govel rnmel nt.Rel tribution is also part of Rel gional Original Rel vel nuel as a support for thel ability of an arel a that providel s potel ntial wel alth el xtractors of an arel a.This is in linel with thel agel ncy thel ory whel rel local govel rnmel nts bel comel agel nts to run rel gional lel viel s that arel usel d in various sel ctors to increl asel local original incomel .Thel rel sults of this study arel also in accordancel with rel sel arch conductel d byRahmawati &; Masyuroh (2021), namel ly rel gional taxel s and rel gional lel viel s affel ct local original incomel .Thel

EL ffel ct of Local Original Incomel on Rel gional EL xpel nditurel
Thel rel sults of data procel ssing show significant rel sults in accordancel with thel grand thel ory in this study, namel ly thel agel ncy thel ory whel rel thel statel apparatus bel comel s an agel nt that acts to bel ablel to rel gulatel local original incomel for thel bel nel fit of rel gional spel nding.Ho is rel jel ctel d or Ha is accel ptel d, mel aning that it can bel concludel d that thel rel is a positivel and significant influel ncel of Local Original Rel vel nuel on Rel gional EL xpel nditurel .PAD has a significant rolel in del tel rmining thel ability of rel gions to carry out govel rnmel nt activitiel s and rel gional del vel lopmel nt programs.Thel govel rnmel nt has an obligation to improvel thel wel lfarel of thel pel oplel and maintain and maintain public pel acel and ordel r.So, local original incomel has a significant el ffel ct on capital el xpel nditurel(Fel briana, 2015).Thel rel sults of this study arel also in accordancel with rel sel arch conductel d byHidayah &; Sel tiyawati (2014)Local Original Incomel has a positivel and significant el ffel ct on direl ct spel nding.Thel

EL ffel ct of Local Taxel s on Rel gional Spel nding
Thel rel sults of data procel ssing show significant rel sults in accordancel with thel grand thel ory in this study, namel ly thel agel ncy thel ory whel rel thel statel apparatus bel comel s an agel nt that acts to bel ablel to rel gulatel rel gional taxel s for thel bel nel fit of rel gional spel nding.Ho is rel jel ctel d or Ha is accel ptel d, mel aning that it can bel concludel d that thel rel is a positivel and significant influel ncel of Local Tax on Rel gional EL xpel nditurel .Onel of thel factors that affel ct rel gional spel nding in tel rms of financial factors is rel vel nuel .Thel rel sults of this study arel also in accordancel with rel sel arch conductel d by Simanjuntak &; Ginting (2019) Rel gional taxel s and rel gional lel viel s havel a significant positivel el ffel ct on rel gional spel nding.

Thel EL ffel ct of Rel gional Lel viel s on Rel gional Spel nding Thel
rel sults of data procel ssing show significant rel sults in accordancel with thel grand thel ory in this study, namel ly thel agel ncy thel ory whel rel thel statel apparatus bel comel s an agel nt that acts to bel ablel to rel gulatel rel gional lel viel s for thel bel nel fit of rel gional spel nding.Ho is rel jel ctel d or Ha is accel ptel d, mel aning that it can bel concludel d that thel rel is a positivel and significant influel ncel of Rel gional Rel tribution on Rel gional Spel nding.Likel thel Rel gional Tax, Rel gional Rel tribution is also onel of thel factors that affel ct Rel gional EL xpel nditurel whel n viel wel d in tel rms of financial factors, namel ly rel vel nuel del rivel d from thel rel gion itsel lf.Thel rel sults of this study arel also in accordancel with rel sel arch conductel d by Chumairoh &; Andi (2022) concluding that "Local rel tribution affel cts capital el xpel nditurel ".Local

Original Rel vel nuel Mel diatel s Local Taxel s Against Local EL xpel nditurel s
Thel rel sults of data procel ssing show significant rel sults in accordancel with thel grand thel ory in this study, namel ly thel agel ncy thel ory whel rel thel statel apparatus bel comel s an agel nt that acts to bel ablel to rel gulatel thel mel diating el ffel ct of local original rel vel nuel for rel gional tax purposel s on rel gional el xpel nditurel s.Ho is rel jel ctel d or Ha is accel ptel d, mel aning that it can bel concludel d that thel rel is a positivel and significant el ffel ct of Local Original Rel vel nuel mel diation on thel rel lationship bel twel el n Rel gional Tax and Rel gional EL xpel nditurel .Thel significant mel diating el ffel ct in correl lating bel twel el n Rel gional Tax to Rel gional EL xpel nditurel makel s a positivel impact on rel gional spel nding in Wel st Java provincel .Local Original Rel vel nuel is an important factor that can spur an increl asel in Rel gional EL xpel nditurel in an el ffort to budgel t el fficiel ncy and el ffel ctivel nel ss.Thel rel sults of this study arel also in accordancel with rel sel arch conductel d byDilapanga el t al.,  (2020)concludel d that "Thel highel r local taxel s rel vel nuel s can increl asel capital spel nding".Likel wisel , rel sel arch conductel d by Nisa el t al., (2020) statel s that "Capital el xpel nditurel significantly affel cts local own sourcel rel vel nuel ".Local

Original Rel vel nuel Mel diatel s Rel gional Lel viel s on Rel gional EL xpel nditurel s
Thel rel sults of data procel ssing show significant rel sults in accordancel with thel grand thel ory in this study, namel ly thel agel ncy thel ory whel rel thel statel apparatus bel comel s an agel nt that acts to bel ablel to rel gulatel thel mel diating el ffel ct of local original incomel for thel bel nel fit of rel gional rel tribution on rel gional el xpel nditurel s.Ho is rel jel ctel d or Ha is accel ptel d, mel aning that it can bel concludel d that thel rel is a positivel and significant el ffel ct of Local Original Rel vel nuel mel diation on thel rel lationship bel twel el n Rel gional Tax and Rel gional EL xpel nditurel .Thel significant mel diating el ffel ct in correl lating bel twel el n Rel gional Rel tribution to Rel gional EL xpel nditurel makel s a positivel impact on rel gional spel nding in Wel st Java provincel .Local Original Rel vel nuel is an important factor that can spur an increl asel in Rel gional EL xpel nditurel in an el ffort to budgel t el fficiel ncy and el ffel ctivel nel ss.Thel rel sults of this study arel also in accordancel with rel sel arch conductel d by Chumairoh &; Andi (2022) concluding that "Local rel tribution affel cts capital el xpel nditurel ".Whel rel in rel sel arch conductel d by Nisa el t al., (2020) statel s that "Capital el xpel nditurel significantly affel cts local own sourcel rel vel nuel ".CONCLUSION Basel d on thel del scription abovel , it can bel concludel d that this rel sel arch aims to invel stigatel thel el ffel ct of Rel gional Tax, Rel gional Lel vy, and Local Original Rel vel nuel variablel s on Rel gional EL xpel nditurel , with Rel gional Original Rel vel nuel as a mel diation variablel .An analysis was conductel d on 27 rel gel nciel s and citiel s in Wel st Java in thel 2020-2021 pel riod with a total of 54 samplel data.Basel d on thel rel sults of rel sel arch, statistical tel sting, and discussion, sel vel ral things can bel concludel d.First, Rel gional Taxel s and Rel gional Lel viel s havel a positivel el ffel ct on Local Original Rel vel nuel .Sel cond, Local Original Rel vel nuel has a positivel influel ncel on Rel gional EL xpel nditurel .Third, Rel gional Taxel s, Rel gional Lel viel s, and Local Original Rel vel nuel s havel a positivel influel ncel on Rel gional EL xpel nditurel .Fourth, Rel gional Original Rel vel nuel acts as a mel diator bel twel el n Rel gional Taxel s and Rel gional Lel viel s and Rel gional EL xpel nditurel s.For advicel going forward, thel study suggel sts a fel w things.First, local govel rnmel nts should considel r el xpanding thel subjel ct and objel ct of local taxel s to increl asel Local Original Rel vel nuel .Sel cond, budgel ting for Rel gional EL xpel nditurel s can bel focusel d on infrastructurel del vel lopmel nt to increl asel Rel gional Rel tribution.Third, thel Wel st Java Provincial govel rnmel nt is advisel d to continuel to managel Rel gional Original Rel vel nuel optimally, according to rel gional nel el ds and financial capabilitiel s.Fourth, thel implel mel ntation of thel rel sults of this rel sel arch can bel supportel d by thel govel rnmel nt to improvel thel el ffel ctivel nel ss of rel gional financial policiel s.Akbar, D. S., Brata, Y. R., Helrlina, EL., Prawiranelgara, B., & Prabowo, F. H. EL. (2019).Asselssing Local Tax Contributions to Local Own Relvelnuel: ELvidelncel in Onel Relgion in Indonelsia.Meldia Riselt Akuntansi, Auditing & Informasi, 19(1), 1-18.https://doi.org/10.25105/mraai.v19i1.3881Albab, N. F. U., Ramadhani, R., & Fitri Komariyah, EL. (2020).thel ELffelct of Local