<![CDATA[This study evaluates the impact of fiscal policy on the Gross Regional Domestic Product (GRDP) of the food crops subsector in Sumatra Island using panel data regression analysis with the Fixed Effects Model (FEM). The independent variables in this study include Foreign Direct Investment (FDI), Domestic Investment (DI), Labor Absorption (LA), and Government Expenditure (GE), while the dependent variable analyzed is the GRDP of the food crops subsector. The findings indicate that FDI and DI do not have a significant impact on the GRDP of the food crops subsector. In contrast, labor absorption has a positive effect, whereas government expenditure negatively affects the subsector, suggesting that budget allocation in this sector is not yet optimal. With an Adjusted R-Square value of 27.78%, 72.21% of the variations in GRDP are influenced by other factors such as infrastructure, commodity prices, and climate conditions. Therefore, further research is needed to identify additional factors to enhance the effectiveness of fiscal policy in the agricultural sector in Sumatra Island.]]>
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