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Because of the resources limitation so resource allocation is a fundamental issue for public sector budgeting especially revenue and expenditure calculation. Regional budget distribution shows local government policies on development funding whereas capital expenditure is concerned with a component of direct expenditure of government budgets that deliver output in the form of fixed asset. This study purposes to determine factors that impress capital expenditure allocation of local governments, are Economic Growth and Regional Revenue (PAD). The population of this study is 35 local governments in the Province of Central Java, Indonesia. By employing multiple regression analysis, t and F test on secondary data from the 2015-2020 Budget Realization Reports of local governments in the Central Java Province, the result shows that economic growth and regional income partially and simultaneously have a positive effect on capital expenditure. These findings imply that local governments should look more carefully at managing their finances, have a strong desire, and provide capital for capital expenditures that have implications for the long-term welfare of local communities. The limitation of this research is that this research is carried out with a quantitative approach and to find out the real conditions in decision making on local government budgeting, it is recommended for further research to use a mixed quantitative and qualitative method.

Community service activities are carried out on MSMEs assisted by the Cimahi city government, West Java. This activity is in the form of socializing the role of MSMEs in taxation and incentives for those affected by COVID-19. The goal is for MSMEs to understand their tax obligations, namely calculating, depositing and reporting taxes and taking advantage of tax incentives provided by the government for business actors affected by the COVID-19 pandemic. Incentives given to MSME actors by reducing the PPh rate (Final Income Tax) to 0.5% of total turnover, according to Government Regulation (PP) Number 23 of 2018 concerning Income Tax on income from businesses received or obtained by Taxpayers who have gross income certain. turnover. Then briefing on the extension of incentives due to this pandemic by utilizing the tax payment abolition facility with the DTP PPh Final mechanism as stated in PMK-82/PMK.03/2021. The implementation is carried out using a webinar mechanism in August 2021. The initial agenda for this activity is coordinated by the activity committee through the WhatsApp group by distributing flyers with the intention that the socialization activities carried out can be followed by the fostered MSME business actors. by the City Government of Cimahi. The output of this activity is to make MSME actors aware of their tax obligations for the business they run, understand how to utilize and use DTP Final Income Tax incentives and calculate, deposit and report taxes.