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Ponte Academic Journal
Nov 2016, Volume 72, Issue 11

EXISTENCE OF CAPITAL BUDGET AND INFRASTRUCTURE SUPPORT ASEAN ECONOMIC COMMUNITY (AEC)

Author(s): Arifin Lubis ,Rustam, Iskandar Muda

J. Ponte - Nov 2016 - Volume 72 - Issue 11
doi: 10.21506/j.ponte.2016.11.9



Abstract:
Knowing the preparation of City District in North Sumatra related to the development of infrastructure by allocating Capex to support the MEA in North Sumatra. Location studies conducted in the District Municipality in North Sumatra. The results of this study can inform efforts to improve the physical infrastructure through the construction or improvement of infrastructure such as transport, telecommunications, toll roads, ports, revitalization and restructuring of industry to the role of Capital Expenditure District Municipality in North Sumatra in the face of the MEA. The study concluded that the Capital Expenditure no significant effect on economic growth. In addition, the results also suggest significant effect on the Economic Growth and Infrastructure Capital Expenditure no significant effect on the realization of the infrastructure. The amount of influence Capital Expenditure on infrastructure and economic growth of 3%. Evaluation of the discussion of the budget needs to be done to look at the accuracy of the use of the government budget for this to be more focused on budget allocation large capital expenditures. Readiness of local government in North Sumatra facing the MEA is determined the existence and quality of the facilities and infrastructure that regional relations with ASEAN countries more prepared. The findings of this study can be considered by development planners and budget planner in North Sumatra for more attention to capital budget items.
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