The expenditure budget, especially capital expenditure is viewed important because it is related to the continuity of government activities. Capital expenditure, a part of local expenditure, is used in the purchase or procurement of tangible fixed assets with an economic value of more than twelve months, for infrastructure development and to provide public facilities. There are interplays between local revenue and Capital Expenditure. The purpose of this research is to investigate how Original Local Government Revenue, General Allocation Fund and Special Allocation Fund influence Capital Expenditure of Cities and Regencies in Bali Province. The population of this research are all regencies and cities in Bali Province, while sample is determined using total population sampling method. The analysis tool utilized is the multiple linear regression analysis. The result of this research shows that Original Local Government Revenue has positive influence on Capital Expenditure, General Allocation Fund has positive influence on Capital Expenditure, Special Allocation Fund positively influence Capital Expenditure.
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