scholarly journals One Decade, 20 Percent Education Budget: How About Causality Between Education Success and Poverty?

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.

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):  
Gugun Geusan Akbar ◽  
Ikeu Kania ◽  
Aceng Ulumudin ◽  
Abdullah Ramdhani

Nowadays, the government has launched various programs for the poor people as a part of the poverty alleviation program. The launch of the various programs involved many parties so that coordination became one of the problems in the poverty prevention program policy in Indonesia. This research was aimed to analyse the coordination of poverty prevention program in Garut as one of the poorest districts in West Java Province. The research used qualitative methods. Data were collected through primary data and secondary data collection. Primary data was collected by interviews and focus group discussions. Secondary data was collected by a review of the literature and data sharing from magazines, reports, news media and others. As the analytical tool, it used the coordination perspectives of Cristensen and Laegreid which adduce the theoretical perspectives related with coordination between organizations, namely instrumental and institutional.The results of the study showed that coordination between organizations in the poverty prevention program is still not good and  still has several factors that become obstacles. Suggestions that can be proposed are the need of leadership development that is collegial collectives. Another suggested thing is the need of common arena development that is aimed to be communication instrument, vision equalization, mission and objectives. It is also aimed to make more integrated program planning from each organization so that the coordination inhibiting factors can be eliminated. Keywords: Poverty Prevention, Coordination Between Organization, Instrumental Perspective, Institutional Perspective


2016 ◽  
Vol 20 (1) ◽  
pp. 68
Author(s):  
Raden Rahman Asjhatri Fandaru

This thesis is an analysis of public policies based on the research carried out about the implementation of RASDA Program (local rice husbandry) in Kulonprogo in 2015. It is claimed as a new alternative offered to replace the Government RASKIN Program that is already running. This research aimed in determining how effective the implementation of the RASDA Program in Kulonprogo was and identifying the factors that cause RASDA program did not run as the expectation. The method used in this study was a qualitative method using two types of data, primary and secondary data. The data collection techniques used were observation, interview, and documentation with informants selection technique using the principle of purposive and snowball techniques. The data analysis technique was done through data reduction, data display, and data verification.The results showed that efforts to renew the RASKIN Program (cheap-priced rice) through RASDA program were not successfully done. The achievement of program outputs and outcome indicators were still far away from the expectation. The progress was not significantly improved, it still encountered the same problems as those in the implementation of the previous RASKIN Program. Meanwhile, farmers did not have any benefits from the uptake of the local rice because it was not optimally prepared.There are several factors that cause RASDA Program in Kulonprogro did not run well. The first reason was that it is difficult to link the concept of the program with the actual situation, seen from: (1) the farmers as the program target still thought conservatively causing the loss of the benefits that will be gained from the RASDA Program; (2) the intervention of political elites in the process of policy formulation; (3) the limited authority of the local government in the National RASKIN Program; and (4) the incoherency among the needs for resources in the factual conditions. The second cause, the conflict of interest among the holders cause the program implementation did not synchronize to each other, as seen from: (1) their efforts to make RASDA program as a springboard for “other” purposes; (2) the bias support of BULOG; (3) the lack of enthusiasm and initiatives among the holders/bureaucracy; and (4) the entrepreneurs’ mindset of business that dominated farmers community. The third reason is that there was not awareness on the characteristics of the group target to anticipate problems that arise.Based on these findings, the researcher suggested the government to focus in optimizing the current mechanisms of the food subsidies. The government should also concern in looking for other alternatives to optimize the potential of the local foods. The government should also  do some efforts to gain the welfare for farmers, by: (1) reconstructing values and norms in terms of social rules to support the program with the intensive socialization; (2) allocating the budget the APBD for the procurement of subsidized rice for poor households who are not registered; (3) monitoring the program up to the lowest level intensively; (4) encouraging small entrepreneurs to become BULOG’s partners to seek an access to the Capital; (5) maintaining fair competition among rice traders; (6) conducting studies on the possibility of establishing a integrated rice husbandry regional company; (7) encouraging the local rice branding.


2017 ◽  
Vol 9 (4(J)) ◽  
pp. 49-61
Author(s):  
Mthokozisi Mlilo ◽  
Matamela Netshikulwe

Direction of causality between government expenditure and output growth is pertinent for a developing country since a sizeable volume of economic resources is in the hands of the public sector. This paper investigates the Wagner's law in South Africa over the post-apartheid era, 1994-2015. This paper is unique to present studies since it uses disaggregated government expenditure and controls for structural breaks. The Granger non-causality test of Toda & Yamamoto, a superior technique compared to conventional Granger causality testing, is employed and this paper finds no support for Wagner's law. However, there is causality running from total government and education expenditures to output. This finding is in line with the Keynesian framework. It is recommended in the paper that the government should take an active role in promoting output growth through increases in education expenditures in particular.


2021 ◽  
Vol 2 (2) ◽  
pp. 181-193
Author(s):  
Esti Pasaribu ◽  
Septriani Septriani

In this paper, we tested the Wagner’s Law against the Keynesian Hypothesis for Indonesia using granger causality test. After conducting theoretical and empirical theory, this paper is analysing the relationship between government expenditure and GDP percapita. The long run parameters and causality test found valid Wagners’ Law in Indonesia not Keynesian Hypothesis. The results reveal a positive and statistically significant long run effect running from economic growth toward the government expenditure refer to Wagner’s Law in Indonesia. Further more, the growth of population is giving a positive effect for government expenditure also.


2018 ◽  
Vol 10 (9) ◽  
pp. 121 ◽  
Author(s):  
Adeola Yahya Oyebowale ◽  
Noah Kofi Karley

This study investigates the influence of financial sector development on economic growth in Nigeria during the period 1982 to 2015. As such, the study obtained annual secondary data from the Central Bank of Nigeria statistical bulletins and World Bank financial database. The empirical model for this study examines growth in savings, growth in exchange rate, growth in government expenditure, growth in stock market capitalization, growth in credit to private sector, growth in gross capital formation, growth in trade openness and growth in broad money on economic growth in Nigeria. The multiple regression output reveals that growth in government expenditure and growth in gross capital formation are statistically significant on economic growth in Nigeria at 1% and 10% respectively under the period under investigation while other regressors in the model prove to be statistically insignificant. VAR test shows that there is considerable short-run causality running from lags of regressors to economic growth in Nigeria except for lag 1 of growth in exchange rate and lag 2 of growth in credit to private sector. The granger causality test reveals the existence of bi-directional causality between financial sector development and economic growth in Nigeria during the period under investigation. Hence, this study supports the ‘feedback hypothesis’ view on finance-growth. Based on these empirical results, this study recommends effective channeling of funds to the private sector and autonomy of the Central Bank of Nigeria in the use of monetary policy tools.


SPLASH Magz ◽  
2021 ◽  
Vol 1 (2) ◽  
pp. 60-62
Author(s):  
Uti Rachel Setyoasih ◽  
◽  
Sri Harnani

This study examines government spending on education, economic growth and poverty in Indonesia. Where investment in education and economic growth reflected in GDP is calculated in USD and poverty is calculated per person or poor population using the mobile average autoregression method using secondary data from world banks. We find that education is able to reduce the number of poor people in Indonesia.


2020 ◽  
Vol 1 (2) ◽  
Author(s):  
Windiyawati M Niuwa ◽  
Fahrudin Zain Olilingo ◽  
Ivan Rahmat Santoso

This study aims to determine how much influence the Government Expenditure of Education Sector and Health Sector on Poverty in Gorontalo City. This research uses quantitative methods. The data used in this study are secondary data sourced from the Central Statistics Agency and the Directorate General of Fiscal Balance Ministry of Finance using the econometrics method through multiple linear regression equations in the form of 10-year time series data (2008-2017). The results showed that 1) Education sector government expenditure has a positive effect on the level of poverty in Gorontalo City 2) Government health sector expenditure has a negative effect on poverty levels in Gorontalo City. Keywords: Poverty, Government Expenditure, Education Sector, Health Sector.


2021 ◽  
Vol 11 (1) ◽  
Author(s):  
Riana Permani

The main strategy of poverty alleviation in Bandung is directed to reduce the poverty rate. But the countermeasures that have been done by the relevant parties have not reached the target set. BPS data in 2019 showed the number of poor people reached 84,670 or 3.38% of the total population. In the last five years, the poverty rate has never reached 1% in accordance with the RPJMD target. On the other hand, all parties agree on the importance of building a system of partnership, coordination, and collaboration between local governments, communities, and non-governmental organizations in collaborative governance. The establishment of the Coordination Team for The Acceleration of Poverty Alleviation (TKPK) Kota Bandung became an important forum in achieving the target of reducing poverty rates. This research aims to find out how the implementation of collaborative governance principles at TKPK Kota Bandung. This study uses a qualitative approach with a descriptive analysis method to find out the existing condition of ongoing collaboration. The data source is obtained from in-depth interviews, field observations as well as secondary data. The results showed that the principles of collaborative governance by TKPK Kota Bandung have not been optimal. The existence of a special meeting forum is more often very important to build a common understanding of the roles and responsibilities of each stakeholder. Optimization of facilitative leadership and institutional design is also indispensable to provide encouragement to the collaboration process that tends to be slow to show temporary results.


Author(s):  
Dr. Angela Mucece Kithinji ◽  

Cases of high levels of public debt have mostly been reported in many developing countries part of which is debt borrowed abroad. Foreign debt is more preferable by many developing countries because it is cheaper to service in terms of interest costs. These countries tax their citizens heavily to raise enough finances to pay foreign debt. It was thus feasible to establish the influence of the foreign debt and taxation on expenditure of the Kenyan government. The study employed a causal research design. The period under study ranged from 2002 to 2017. The study used secondary data which was extracted from the National Bureau of Statistics, and National Economic Surveys which were available at the Government of Kenya website. Correlation statistics were conducted to establish the association between variables. Regression analysis was used to establish the effect of foreign debt and taxation on government expenditure in Kenya. The findings revealed that foreign debt and taxation influences government expenditure individually. However, on the test of the joint effect, only taxation was found to influence public expenditure significantly unlike foreign debts.


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