This study aims to analyze the influence of the allocation of the State Budget (APBN) in the education and health sectors on the Human Development Index (HDI), as well as the influence of the HDI on Indonesia's Gross Domestic Product (GDP) during the 2005–2024 period. The analytical methods used include Ordinary Least Squares (OLS), the chain rule in differential analysis, and the Granger Causality test to evaluate the relationship between variables. The results show that government spending in the health sector and education have a positive and significant effect on the HDI. Furthermore, the Human Development Index (HDI) has a positive effect on Indonesia's GDP. Furthermore, GDP and HDI are also found to have a one-way causal relationship with the APBN in the education sector. This means that changes in the HDI and GDP significantly influence budget allocation in the education sector. These findings emphasize the importance of strengthening budget allocations in the education and health sectors to support human development and accelerate national economic growth.
Copyrights © 2026