This study aims to analyze the influence of government expenditure on income inequality in Bengkulu Province. The data used is secondary data sourced from the Central Bureau of Statistics. Furthermore, the analysis tool used in this study is multiple linear regressions using panel data during the 2019-2021 periods. The results of this study show that simultaneously the variables village fund, education function expenditure, and economic function expenditure have a positive effect on income inequality in Bengkulu Province at α= 5%. Meanwhile, partially, the Village Fund has a negative and significant influence on income inequality in Bengkulu Province. Good management in infrastructure development and village economic empowerment helps reduce the gap between villages and cities. However, its effectiveness can be improved by focusing on poverty alleviation and job creation. While education function expenditure shows a positive influence on income inequality, even though education spending increases, inequality actually worsens. This is due to the unequal access and quality of education between rich and poor regions. For this reason, education policies must ensure equal access and quality throughout the region. Meanwhile, economic function expenditure does not have a significant effect on income inequality in Bengkulu Province. Suboptimal management and uneven distribution reduce the positive impact. Policies that focus more on empowering the local economy, improving fund management, and distributing benefits more evenly across all levels of society are needed to reduce inequality.