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All Journal Journal of Management, Accounting, General Finance and International Economic Issues (MARGINAL)
Yunidar Purnama Sari
Faculty of Economics, Teuku Umar University, Indonesia
Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Environmental Science Social Sciences

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Can Central Government Transfer Funds Reduce Poverty in Aceh Province? Yunidar Purnama Sari; Nasri Bachtiar
JOURNAL OF MANAGEMENT, ACCOUNTING, GENERAL FINANCE AND INTERNATIONAL ECONOMIC ISSUES Vol. 4 No. 1 (2024): DECEMBER
Publisher : Transpublika Publisher

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.55047/marginal.v4i1.1500

Abstract

This study aims to determine the effect of central government transfer funds to regions on poverty in Aceh Province. The analytical method used in this research is the panel regression analysis method. The data used include general allocation funds, specific allocation funds, revenue-sharing funds, and poverty levels, published by the Ministry of Finance of the Republic of Indonesia and the Central Bureau of Statistics (BPS) for the districts/cities in Aceh Province from 2020 to 2023. The results of this study indicate that the General Allocation Fund (DAU) has a positive impact on poverty levels, while the Specific Allocation Fund (DAK) and Revenue Sharing Fund (DBH) have a negative impact on poverty in Aceh Province. Regional governments need to allocate the DAU not only for routine expenditures but also for productive programs focused on poverty alleviation, such as infrastructure, education, and health. Strengthening DAK and DBH programs is also essential for community empowerment in productive sectors and basic infrastructure to improve access and economic opportunities for the poor. Strict oversight of the use of DAU, DAK, and DBH is necessary to ensure funds are used in a targeted manner, avoiding projects with minimal impact. Additionally, regional self-reliance in optimizing Local Revenue (PAD) should be encouraged so that regional governments have greater flexibility in implementing poverty alleviation programs according to local needs.
An Analysis of the Impact of Regional Taxes, Social Assistance Expenditures, and Income Inequality on Economic Growth in Regencies/Cities in Aceh Province Yunidar Purnama Sari; Hefrizal Handra; Efa Yonnedi
JOURNAL OF MANAGEMENT, ACCOUNTING, GENERAL FINANCE AND INTERNATIONAL ECONOMIC ISSUES Vol. 4 No. 1 (2024): DECEMBER
Publisher : Transpublika Publisher

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.55047/marginal.v4i1.1532

Abstract

This study aims to analyze the impact of regional taxes, social assistance expenditures, and income inequality on the economic growth of regencies/cities in Aceh Province for the 2020-2023 period using a panel regression model. The analysis results indicate that regional taxes have a positive and significant impact on economic growth, where increased regional taxes contribute to the development of critical infrastructure and public services. Furthermore, social assistance expenditures also enhance household purchasing power, which directly boosts local economic growth. However, income inequality has a negative and significant impact on growth, as rising inequality hinders public access to education and healthcare and creates social instability. These findings underscore the importance of effective management of regional taxes and social assistance programs, as well as the need for policies to reduce income inequality as a strategy to promote inclusive and sustainable economic growth in Aceh. This study provides recommendations for local governments to formulate more progressive policies in managing economic resources for the welfare of society.
Co-Authors Efa Yonnedi Hefrizal Handra Nasri Bachtiar