Village Government is the lowest administrative unit in the state governments that have given the right of indigenous autonomy with certain limits as a unified community law (adat) are entitled to regulate and manage the affairs of the local community in the implementation of the rule of origin. The success of an organization to meet the challenges set by people who do the work on it, so the capacity of the individual must be considered. Considering there is a budget increase for the village, the village is required to develop the capacity to manage these budgets to the maximum. The purpose of this study is essentially to Know the capacity of Teluk Bakau manage Village Fund Allocation. According to Law No. 6 Tahun2014 about the village in Article 72 paragraph (1) item d, explained that the allocation of village funds that are part of the balance funds received by Regency / City. This study uses the theory Riyadi Soeprapto (Novita Sari, et al., 2014: 635) who suggested that capacity building should be implemented in an effective and sustainable in three (3) levels: Level Individual, Organizational Levels, and Level System. Data analysis techniques used in this research is qualitative descriptive analysis technique. After doing research, the final results of the study suggested that the Irish village of Teluk Bakau manage Village Allocation Fund, taking into account the dimensions of capacity development are taken from the individual level, the level of organization, as well as the systems level, overall there are no constraints or problem- a big problem that can inhibit the allocation of these funds. General Allocation Fund budget absorption, both in Shopping Indirect and direct expenditure amounted Rp.334.072.480, and absorbed amounted Rp.302.828.130 or approximately 90.6%. The problem that occurs is contained by the village which still provides maximum performance in carrying out its duties and functions as the manager of the Village Fund Allocation, this is because the device is that Village take office in the government of Teluk Bakau, so mastery of tasks and functions are still not optimal.