<![CDATA[The purpose of this research was to analyze fiscal and poverty performance, (1) to analyze fiscal policy impact on poverty performance, and (2) to determine strategic policy on poverty in North Sumatera Province. Model of fiscal policy in North Sumatera Province was built with the dynamic simultaneous equations system and used 2 SLS with SYSLIN and SIMNLIN procedures. In this study we alse used pooled data in 1990-2007 period. The results of this study were: (1) factors of fiscal performance in North SUmatera which were local tax and tax sharing were influenced by local GDP positively, on the other hand general allocation funds and local retribution were not influenced by local GDP, and (22) during fiscal policy, poverty performance decreased, which has interpreted with number of poor people in rural areas and number of poor in urban - poverty condition in urban area which was to decrease found and fluctuate, (3) in simulation section, decreased of illeteracy and health expenditure gave better impact on poverty and also increased local GDP in North Sumatera than other simulation. Finally, it was that Fsiscal policy, especially in health and education sector, will stimulate social life in the future]]>
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