<![CDATA[This study aims to analyze the role of the government in optimizing village fund management to improve the social and economic welfare of rural communities. This research employs a qualitative approach using literature review and case study analysis methods. The findings indicate that the government plays a key role in improving the effectiveness of village fund management through policy formulation, capacity building of village officials, strengthening supervision systems, and encouraging community participation in every stage of village fund management. Management practices implemented based on the principles of good governance, namely transparency, accountability, and participation, have a positive impact on infrastructure development, improving the quality of public services, strengthening community economic empowerment, and reducing poverty levels in villages. However, several challenges remain, including the limited competence of village officials, low community participation in monitoring processes, and the suboptimal utilization of information technology and administrative governance systems. Therefore, effective village fund management requires strengthening the institutional capacity of village governments, improving supervision mechanisms, and fostering collaboration with communities to ensure that village funds provide sustainable benefits for the welfare of rural communities.]]>
