<![CDATA[The national development paradigm of Indonesia following the enactment of Law Number 6 of 2014 has undergone a fundamental shift from centralization to asymmetric decentralization, positioning villages as the primary subjects of development. This study aims to comprehensively analyze the impact of Village Fund management on improving community economic conditions in Southeast Minahasa Regency, North Sulawesi Province, during the period 2016 to 2020. The main focus of this study is to evaluate the effectiveness of budget allocation across three key pillars: human capital intervention (education and health), physical capital formation (infrastructure), and productive economic stimulus (local economic development). Using a quantitative research design with panel data covering 32 sample villages across 12 sub-districts, this study employs regression analysis with a Fixed Effect Model (FEM) approach, selected through rigorous model specification tests. The empirical findings indicate that, simultaneously, the three independent variables account for 67.83% of the variation in community economic improvement. Partially, the allocation of funds for local economic development shows the highest elasticity coefficient, followed by education and health, and infrastructure. This study confirms that the transformation of village status in Southeast Minahasa from underdeveloped to self-reliant is strongly influenced by the accuracy of fiscal allocation. The article recommends a policy reorientation from massive physical development toward commodity-based economic empowerment and the strengthening of social safety nets to ensure the sustainability of rural economic growth.]]>
