The phenomenon of budget implementation in Indonesia is still an important concern of several previous studies. This condition is caused by the implementation of the budget is one indicator of local government performance appraisal. This study aims to examine and analyze the effect of local tax, fiscal decentralization, and capital expenditures on budget implementation. This study uses a sample of all local governments in Indonesia during 2019-2020 using the purposive sampling method. This study uses eviews version 11 to test the hypothesis. The results of this study found that local tax have no significant effect on budget implementation, while fiscal decentralization and capital expenditures have a positive and significant effect on budget implementation. The contribution of this study to local government policies to achieve economic stability, local governments need to manage regional revenues and regional expenditures efficiently, effectively, and economically.

Keywords : local tax, fiscal decentralization, capital expenditure, budget implementation.