This study aims to examine the effect of Local Revenue, Balance Fund on Capital Expenditure. The research uses cross sections and time series data in 23 regencies/cities in Aceh Province during 2013-2021. Uses Metodologi  fixed effect model. The results of this study showed  that partially Local Revenue has a negative and  insignificant effect on Capital Expenditures, while Balancing Funds has a positive and significant effect on Capital Expenditures. The results of this research showed that simultaneously Local Revenue, Balancing Funds have a positive effect on Capital Expenditures.