scholarly journals The Analysis of Influence of The Government Expenditure on Poverty in Indonesia

2020 ◽  
Vol 18 (1) ◽  
pp. 91
Author(s):  
Miar Miar ◽  
Ahmad Yunani

One of the roles of the government in efforts to reduce poverty is through an allocative role in developing effective budget allocation policies that can stimulate economic growth with the ultimate goal of suppressing and reducing poverty. Government expenditure is one of the fundamental government policy tools in efforts to reduce poverty. This research focuses on the effect of government expenditure on poverty in Indonesia. The data used in this study are secondary data including data on the realization of provincial government expenditure in Indonesia, the realization of economic growth that is substituted into the GRDP at the basis of Constant Prices in the provincial government in Indonesia and poverty in proxies in the form of the number of poor people obtained from BPS period in 2014-2018. The data analysis technique which is used in this study is the path analysis technique. Based on the results of the analysis, it can be concluded that in this study government expenditure variables have a significant direct effect on poverty in Indonesia. In addition to direct influence, the results of this study also show that government expenditure variables are indirectly able to influence changes in poverty reduction in Indonesia through economic growth variables

Author(s):  
Putu Yudy Wijaya ◽  
Nyoman Reni Suasih

In 2019, exactly one decade of the government expenditure on education in Indonesia (central and local government) was allocated 20 percent. The purpose of this study was to analyze the causality relationship between government budget on education, education success (proxied by the mean years of schooling), and poverty (proxied by the number of poor people) in Indonesia. The data analyzed is secondary data, to be precise panel data from 34 provinces in Indonesia over a period of five years (2015-2019). The analysis technique used is the Granger Causality Test. The results showed that the government budget on education had a significant effect on the mean years of schooling and had a causal relationship with poverty. Meanwhile, poverty has been shown to affect the mean years of schooling. Based on the results of this analysis, it is for the government to consistently prioritize the budget for the education sector because it is proven to have an impact on education success and poverty alleviation. In addition, the government also needs to pursue poverty alleviation programs such as subsidizing cash assistance for student in poverty.


2019 ◽  
Vol 8 (3) ◽  
pp. 184-193
Author(s):  
Arif Rahman ◽  
Purwaka Hari Prihanto ◽  
Muhammad Safri

Study aims to: 1) To find out the development of economic growth, inflation and the level of open unemployment in Jambi Province; 2) To analyze the influence of economic growth, inflation and the open unemployment rate on the number of poor people in Jambi Province. This research uses secondary data for the period 2001-2016. The method used in analyzing the data is by using multiple regression analysis. The results of this study indicate that: 1) The poor population in Jambi Province from 2001-2016 has decreased, where the number of poor people in Jambi Province has decreased by 0.46 percent. Economic growth in Jambi Province on the basis of constant prices from 2001-2016 experienced an average fluctuation of 6.23 percent per year. During the period of 2001-2016 the inflation rate in Jambi Province was an average of 12.25 percent. The highest number of unemployed occurred in 2005, amounting to 133,964 people and then in 2016 a decrease of 67,671 people; 2) Every increase in economic growth in Jambi Province is 1 percent, the poverty rate of the population in Jambi Province will decrease by 0.140 percent. The results of this test indicate that economic growth has a negative impact on the number of poverty in Jambi Province. Every increase in the inflation rate by 1 percent, the poverty rate will increase by 0.002 percent and every increase in the unemployment rate in Jambi Province by 1 percent, the poverty rate of the population in Jambi Province will increase by 0.052 percent. Together economic growth, inflation and unemployment have a positive and significant effect on the poverty rate of the population in Jambi Province during the period 2001-2016. Variation in ups and downs the poverty rate of the population in Jambi Province is able to explain economic growth, inflation and unemployment by 35.2 percent, while the remaining 64.8 percent is explained by other variables not included in this research model.


Author(s):  
Amadi Kelvin Chijioke ◽  
Alolote Ibim Amadi

This study primary examines the effects of government infrastructural expenditure on economic development in Nigeria. Secondary data sourced from reported annual spending on selected infrastructure and annual Gross Domestic Products were statistically analyzed. The data treatments used for the secondary data were unit root and co-integration tests using Augmented Dickey–Fuller and Phillip–Perron model. Weighted least square was also used to test the sample of 37-year annual time series using vector error correction model. The data analysis was done with descriptive statistics. Findings from the study revealed that government spending on transport, communication, education and health infrastructure have significant effects on economic growth; spending on agriculture and natural resources infrastructure recorded a significant inverse effect on economic growth in Nigeria. An element of fiscal illusion was observed in the government spending on agriculture and natural resources indicating that government is not contributing as much as the private sector in spending on agriculture and natural resources infrastructure in Nigeria.


2021 ◽  
Vol 72 (01) ◽  
pp. 74-80
Author(s):  
SMITHA NAYAK ◽  
VARUN S.G. KUMAR ◽  
SUHAN MENDON ◽  
RAMONA BIRAU ◽  
CRISTI SPULBAR ◽  
...  

Government expenditure is linked to the economic growth and is the driving force of the every country. In the post liberalization era, India has been exposed to the dynamics of the world economy due to which India has witnessed a significant impact of Government spending on its economic growth. The objective of this paper is to investigate the effects of the Central Government spending on the growth of the Indian economy over a period, from 2006 to 2016. The online data disclosures of the various ministries have been the major source of secondary data. Co-integration analysis is adopted to evaluate the effect of individual sectorial spending on the economic growth and gross domestic product. The economic spending is classified into 5 sectors namely: General Services, Social Services, Economic Services, Grants in Aid & Contribution and Public debt & Loans for analysis, as disclosed by the sources. The analysis gives us an idea of the various sectors which have a positive impact and the sectors which have a negative impact. The results would play an instrumental role in exploring the sectors in which the government should invest more, thereby contributing to an enhancement in the country’s growth.


Author(s):  
Meylani M. Arina ◽  
Rosalina A.M. Koleangan ◽  
Daisy S.M. Engka

ABSTRAK Pertumbuhan ekonomi dipengaruhi oleh berbagai faktor, diantaranya adalah  pengeluaran pemerintah (government expenditure). Besar kecilnya pengeluaran pemerintah sangat tergantung pada pendapatan yang diterima oleh pemerintah itu sendiri dalam kurun waktu tertentu. Di era otonomi daerah maka sumber pendapatan daerah terdiri atas PAD, DBH, DAU, dan DAK. Semakin besar pendapatan yang diterima oleh pemerintah daerah akan semakin baik sebab mempengaruhi secara positif pembiayaan pembangunan ekonomi di daerah, dalam arti bahwa belanja pemerintah untuk pembangunan ekonomi juga akan semakin besar sehingga pada akhirnya pertumbuhan ekonomi akan mengalami peningkatan.Tujuan dari penelitian ini untuk menganalisis Pendapatan Asli Daerah (PAD), Dana Bagi Hasil (DBH), Dana Alokasi Umum (DAU), Dana Alokasi Khusus (DAK) berpengaruh atau tidak terhadap pertumbuhan ekonomi di Kota Manado. Teknik analisis yang digunakan adalah analisis regresi berganda. Hasil penelitian bahwa secara parsial hanya Pendapatan Asli Daerah (PAD) bertanda positif dan berpengaruh signifikan terhadap pertumbuhan ekonomi di Kota Manado. Sedangkan Dana Bagi Hasil (DBH), Dana Alokasi Umum (DAU) dan Dana Alokasi Khusus (DAK) bertanda negatif dan tidak berpengaruh signifikan terhadap pertumbuhan ekonomi. Selanjutnya secara bersama-sama Pendapatan Asli Daerah (PAD), Dana Bagi Hasil (DBH), Dana Alokasi Umum (DAU) dan Dana Alokasi Khusus (DAK) terhadap pertumbuhan ekonomi di Kota Manado bertanda positif dan berpengaruh signifikan. Dan untuk pengaruh secara simultan Pendapatan Asli Daerah (PAD), Dana Bagi Hasil (DBH), Dana Alokasi Umum (DAU) dan Dana Alokasi Khusus (DAK) secara bersama sama berpengaruh positif dan signifikan terhadap Perekonomian Kota Manado. Kata Kunci : Pendapatan Asli Daerah, Dana Bagi Hasil, Dana Alokasi Umum, Dana Alokasi Khusus, dan Pertumbuhan Ekonomi ABSTRACT                Economic growth is influenced by various factors, including government expenditure. The size of government expenditure depends on the income received by the government itself in a certain period of time. In the era of regional autonomy, the source of regional income consists of PAD, DBH, DAU, and DAK. The greater the income received by local governments will be better because it positively influences the financing of economic development in the region, in the sense that government spending on economic development will also be greater so that ultimately economic growth will increase.                     The purpose of this study is to analyze Local Own Revenue (PAD), Revenue Sharing Funds (DBH), General Allocation Funds (DAU), Special Allocation Funds (DAK) influence or not for economic growth in Manado City. The analysis technique used is multiple regression analysis. The results of the study that partially only Local Own Income (PAD) is positive and has a significant effect on economic growth in the city of Manado. Whereas Revenue Sharing Funds (DBH), General Allocation Funds (DAU) and Special Allocation Funds (DAK) are negative and do not have a significant effect on economic growth. Furthermore, together with Local Own Revenue (PAD), Revenue Sharing Funds (DBH), General Allocation Funds (DAU) and Special Allocation Funds (DAK) for economic growth in Manado City, they are positive and have a significant effect. And for the simultaneous influence of Local Own Revenue (PAD), Revenue Sharing Funds (DBH), General Allocation Funds (DAU) and Special Allocation Funds (DAK) together have a positive and significant effect on the Economy of Manado City. Keywords: Local Revenue, Revenue Sharing, General Allocation Funds, Special Allocation Funds, and Economic Growth


Author(s):  
Bambang Hermanto ◽  

The problem of poverty in JABODETABEK when measured by the percentage of poverty has decreased but tends to be slow in 2014-2018 and this problem is a challenge for the government because the poverty rate is still high in JABODETABEK, even though this region has high industrial activity in Java and is a location factor that affects close to the centre of government. This happens because economic growth is the most dominant anti-poverty instrument. This study uses panel data regression analysis technique with the data used is secondary data obtained from the Central Statistics Agency. The results obtained indicate that economic growth has a positive and significant effect on poverty. Suggestions for reducing poverty levels are that local governments need to encourage an increase in the rate of economic growth in the areas of Jakarta, Bogor, Depok, Tangerang and Bekasi.


Author(s):  
Bagus Sumargo ◽  
Rahadita Nur Haida

The biggest obstacle to sustainable development in Indonesia is due to social-environmental factors. The objective of this study is to identify lever variables in the intended socio-environmental factors through dimensional analysis in sustainable development. By using the path analysis methods and secondary data on economic growth, the number of poor people and an index of environmental quality in Indonesia, 2016, it can be proven that poverty has a direct negative effect on environmental quality. This makes it possible to occur in the rural poverty typology because their needs for life depend on natural resources. Therefore, poverty reduction policies should be prioritized in reducing the number of poor people in rural areas.


2020 ◽  
Vol 1 (1) ◽  
pp. 40-45
Author(s):  
Juma‘eh ◽  
Harin Tiawon ◽  
Alexandra Hukom

Decentralization of the government that passed since 2004 provides an opportunity to improve the welfare of the community if financial management is carried out effectively. Unfortunately, some regions failed to take advantage of this opportunity. This study aims at analyzing the effect of fiscal capacity and government spending on economic growth and social welfare in Central Kalimantan Province. Path analysis and multiple regression tests using IBM SPSS Version 25.0 are used to analyze government capital expenditure and economic growth in 2007-2017. The results show that fiscal capacity and government spending have a significant direct effect on economic growth. Fiscal capacity and government expenditure do not have a significant direct effect on economic growth, while economic growth has a significant direct effect on economic growth. Meanwhile, fiscal capacity and government spending have a significant indirect effect on the welfare of the community through economic growth in the province of Central Kalimantan in the 2010-2017 period. In addition, efforts to increase sources of the regional revenue, mainly local revenue, are needed to increase regional financial independence in the implementation of regional autonomy and to enhance economic growth.


2021 ◽  
Vol 1 (1) ◽  
pp. 43-46
Author(s):  
Yusi Okta Rama ◽  
◽  
Sri Harnani

This study examines the role of government subsidies in increasing consumption and economic growth in poverty reduction efforts in Indonesia. This study uses secondary data from world banks and is processed by regression using the moving average autoregression method. We find that subsidies without empowering the poor in contributing to the economy only increase public consumption without reducing the number of poor people. Where more and more subsidies are given, it increases the number of people living in poverty line with an income below 3.2 USD per day.


2021 ◽  
Vol 8 (5) ◽  
pp. 238-248
Author(s):  
Marita . ◽  
Weni Hawariyuni ◽  
Irsad Lubis

Poverty is one of the problems that become the center of attention in any country including Indonesia, especially North Sumatra Province. In poverty alleviation, the government is required to supervise supporting policies that can alleviate the poverty level. Factors that can alleviate poverty are economic growth, government expenditure, and investments made. The purpose of this study is to find out and analyze the influence of economic growth, government expenditure, and investment on poverty levels in North Sumatra Province. This type of research is ex post facto and associative. The type of data used is quantitative in the form of secondary data. The population of this study is variable data in districts/cities in North Sumatra Province, namely as many as 33 districts/cities during 2014-2018 and sample withdrawal used is cluster sampling so that the sample as many as 165 observations. The data analysis method used is to use multiple linear regressions using Eviews10.0 software. The results showed economic growth, government expenditure and simultaneous investment negatively and significantly affected the poverty rate in North Sumatra Province with a coefficient of determination (R2) of 0.9938 or 99.38%. Partial economic growth has a negative and significant effect on the poverty rate in North Sumatra Province while government expenditure and investment have an insignificant negative effect on poverty in North Sumatra Province. Keywords: Economic Growth, Government Expenditure, Investment, Poverty Level.


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