SUMMARY
This study focuses on evaluation on Village Fund Allocation through on examining the effect of the Village Fund Allocation on Capital Expenditure, Economic Growth, Poverty, and Social Walfare. Using secondary data and purposive sample method, this study has 411 districts as the samples with criteria in 2015. This study used Partial Least Square (PLS). Before doing the analysis of PLS, Klassen typology analysis was conducted. In Klassen typology, the districts in Indonesia were grouped into 4 quadrants, namely quadrant I (developing area), quadrant II (prime area), quadrant III (potential area), and quadrant IV (backward area). The test results are as follows: Village Funds Allocation has a positive effect which is significant on Economic Growth of the districts in Indonesia for quadrant III and IV are proven. The Capital Expenditure has a positive effect which is significant on Economic Growth; quadrant III is proven. The Economic Growth has negative effect which is significant on Poverty; from the test, are not proven. The Economic Growth has a positive effect which is significant on Social Welfare; quadrant I is proven.Keyword: Village Fund Allocation, Capital Expenditure, Economic Growth, Poverty, Social Welfare