This research aims to analyze the impact of APBD/counties/ regency/city budget allocation against the poverty in Indonesia for the period of 2006 – 2009. By using the panel data of 172 regencies/cities, this research has found that the allocation of APBD budgeting is not pro-poor oriented, but it could have the possibility to reduce the poverty level. The result of this research has explained that low rate of the inflation could reduce the poverty level itself.Keywords: budgeting allocation, APBD (counties, district, city budgeting), pro-poor, poverty level.
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