BUDGET ALLOCATION SENSITIVITY ON POVERTY IN INDONESIA

Muhammad, Mukhtar Fadhillah (2018) BUDGET ALLOCATION SENSITIVITY ON POVERTY IN INDONESIA. Diploma thesis, Universitas Andalas.

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Abstract

Budget allocations are integral components of an annual financial plan, or budget of government. They indicate the level of government resources committing to a department or program. Without allocation limits, expenditures can exceed revenues and result in financial shortfalls. The purpose of this research is to measure and analyze the budget allocation sensitivity towards poverty and also analyze the relationship between the sensitive variables and the poverty. This study use 33 province level of data in Indonesia and realization of APBD in 2015. The method applied in this study is the multiple linear regression analysis. The result shows that budget allocation on environment, peace order, public services, social protection sector do not have significant effect toward poverty, while budget allocation sector economy, education, health, housing public facilities, tourism and culture have significant effect on poverty. Keywords: Budget allocation, sensitivity, poverty, Indonesia

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