Capital Expenditure in Action: Enhancing Accountability and Impact in Regional Development

Abstract

This study evaluates the effectiveness of local government's capital expenditure management in supporting infrastructure development. The research adopts a scoping review method, enabling an in-depth analysis of relevant literature. Research data were collected from primary sources, including academic articles and public documents from Google Scholar, relevant to capital expenditure management and the effectiveness of government budgets. The analysis was conducted to identify key issues, including non-compliance with regulations and weaknesses in internal control systems. The findings reveal that many local governments have not maximized the utilization of capital expenditures due to low compliance with procedures and insufficient oversight. From the perspectives of agency theory and public accountability theory, these issues highlight the need for greater transparency and enhanced accountability to reduce conflicts of interest and improve public trust. Recommendations from this study include strengthening internal oversight, improving public accountability, and implementing stricter and more accountable policies to enhance the effectiveness of capital expenditures. These steps are expected to impact infrastructure development and public welfare positively.