Arus Jurnal Sosial dan Humaniora
Vol 6 No 1: April (2026)

Government Budget Efficiency on Economic Growth

Puspita, Indah Lia (Unknown)
Juvindi, Agus (Unknown)
Safitri, Liayana (Unknown)
Lestari, Maya (Unknown)



Article Info

Publish Date
20 Apr 2026

Abstract

This study aims to analyze the impact of budget efficiency on economic growth, both nationally and regionally in Indonesia. Budget efficiency is not merely about saving government spending, but rather emphasizes the optimization of resources so that every rupiah spent provides maximum benefits for society and economic development. The results of the study indicate that government budget efficiency has significant positive and negative impacts on economic growth. The positive impacts of budget efficiency carried out by the government are as an increase in a country's competitiveness, then as inflation control, as well as in several sectors that greatly influence economic growth such as infrastructure, industry, agriculture and MSMEs. The negative impacts caused by government budget efficiency can result in slowing economic growth due to budget cuts in vital sectors, then a decrease in people's purchasing power, a reduction in the workforce resulting in soaring unemployment rates. In addition, budget efficiency carried out by the government without strategic planning can also lead to development inequality between regions, especially in underdeveloped areas that are highly dependent on government funding allocations. Therefore, the implementation of budget efficiency must be accompanied by appropriate policies to continue to encourage inclusive and sustainable economic growth, and ensure the equitable distribution of the benefits of budget efficiency to all levels of society.

Copyrights © 2026






Journal Info

Abbrev

ajsh

Publisher

Subject

Religion Humanities Economics, Econometrics & Finance Languange, Linguistic, Communication & Media Law, Crime, Criminology & Criminal Justice Social Sciences

Description

Arus Jurnal Sosial dan Humaniora (AJSH) menerbitkan karya hasil penelitian dan kajian ilmiah pada ruang lingkup ilmu sosial dan ilmu humaniora diantaranya: antropologi, kajian bisnis, kajian komunikasi, tata kelola perusahaan, kriminologi, kajian lintas budaya, demografi, kajian ekonomi pembangunan, ...