<![CDATA[Poverty is a structural problem that is still a major challenge in underdeveloped areas such as Sumba Island. The purpose of this research is to analyze how government spending in the education and health sectors affects the Human Development Index, as well as to explore its effect on poverty levels. This study uses a quantitative method with panel data covering four districts on Sumba Island during the period 2019 to 2024. The data used was obtained from the official report of the Central Statistics Agency and the Regional Revenue and Expenditure Budget document. The analysis in this study was carried out using panel data regression through a fixed-effect approach, which was determined based on the results of the Chow and Hausman test. The results obtained show that government spending on the education and health sectors has a positive and significant impact on the increase in the Human Development Index. In addition, the Human Development Index has a negative and significant effect on the poverty rate. These findings indicate that increased investment in basic services such as education and health is likely to drive human development and reduce poverty rates. Therefore, local governments need to focus budget policies on these sectors in a more targeted and sustainable manner.]]>
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