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Nurfatma Restu Mahanani


Unraveling the impact of social assistance and capital expenditure on poverty rates in Papua Region


27 Mei 2024 / JURNAL TATA KELOLA DAN AKUNTABILITAS KEUANGAN NEGARA Volume 9 Number 2, 2023: Hal.271-288

The Indonesian government has made various efforts to reduce poverty, including through policies in government spending. The spending realized by the government is expected to be able to en-courage an increase in people"s welfare and reduce poverty. This study aims to analyze the effect of government spending, especially social assistance expenditure and five types of capital expendi-ture, on the poverty rate, using data at the regional/city level in the Papua province from 2011 to 2019. This study also uses other supporting variables, namely the Gini ratio, Gross per capita Re-gional Domestic Product (GRDP), school participation rate, and ratio of community health cen-ters. The data used is secondary data obtained from Statistics, The Audit Board of The Republic of Indonesia (Badan Pemeriksa Keuangan, BPK), and the Ministry of Health. The data analysis tech-nique used in this study is panel data regression analysis with a fixed effect model. The analysis showed that out of the six types of government expenditure studied, only capital expenditure for roads, networks, and irrigation significantly reduces the poverty rate.
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