“…Thus, capital expenditure will be able to improve services to the public and at the same time give an impact to the comfort of the community. Mangkunegara (2015) used one of the elements of the financial statements, namely capital expenditure presented at the LRA, to predict its effect on the financial performance of regional governments in improving the welfare of the community. Mangkunegara (2015) proposed that the variable capital expenditure of regional governments be re-examined because the findings were not consistent with the research conducted byMarfiana & Kurniasih (2013).Research conducted has found that capital expenditure does not have a significant effect on the performance of regional governance (Artha, Basuki, & Alamsyah, 2015) and capital expenditure has a significant effect on local government performance in realizing the public welfare (Mangkunegara, 2015;Sari & Supadmi, 2016;Antari & Sedana, 2018;Astiti & Mimba, 2016;Ayinde et al, 2015 andMarfiana &Kurniasih, 2013).…”