Due to the governmental implementations and services to the public in accordance with the decentralization principle, the regional areas have the authority to collect taxes/levies and manage the Natural Resources (<em>SDA</em>). The regional areas funding sources consist of Own-Source Revenue (<em>PAD</em>), Fiscal Balance/Revenue Sharing Fund (<em>DBH</em>), General Allocation Fund (<em>DAU</em>) and Special Allocation Fund (<em>DAK</em>) which are directly managed by the regional government through its Regional Revenue and Expenditure Budget (<em>APBD</em>). This research aims at analyzing the influence of <em>PAD, DAU, </em>and<em> DAK</em> on capital expenditure of Bali province. The research population is all city/regency governments in Bali. This research employs a census method involving all Regencies and municipalities in Bali Province. The data are the regional government expenditure realization during the period of 2010 to 2015. The results show that <em>PAD</em> does not significantly influence Capital Expenditure, while <em>DBH, DAU</em>, and <em>DAK</em> significantly influence Capital Expenditure.
