ABSTRACT: This study examines the impact of Regional Original Revenue (PAD), Revenue Sharing Funds (DBH), and Capital Expenditure (BM) on corruption levels (CL) in local governments in Indonesia, with Good Government Governance (GGG) as a moderating variable. Using panel data from ten provinces with the highest corruption rates from 2014 to 2023, the analysis applies a quantitative method with panel data regression. The results show that PAD, DBH, and capital expenditure significantly affect corruption. When GGG is included as a moderating factor, PAD has a negative effect on corruption, DBH has no effect, and capital expenditure still has a positive effect. These finding highlight the role of good governance These findings in reducing corruption related to local revenues, but also show that capital spending remains vulnerable, even under strong governance.

KEYWORDS – capital expenditure, corruption, GGG, DBH, PAD