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THE IMPACT OF VILLAGE FUND ALLOCATION ON THE ECONOMIC OF BENGKULU PROVINCE, INDONESIA


Author: Septriani Septriani*
Department of Economic Development, Faculty of Economics and Business, University of Bengkulu, Bengkulu, Indonesia.
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Abstract:
This study aims to determine whether the fiscal policy of the Indonesian government related to the allocation of village funds has an impact on the problem of poverty and unemployment in Bengkulu Province. This study used secondary data sourced from the Indonesian Ministry of Finance and the Central Statistics Agency. The type of data used is panel data with the research period, namely 2015-2022 and the number of observations, namely 9 districts in Bengkulu Province. Furthermore, this study used panel data regression. The results of the analysis show that the allocation of village funds significantly negatively affects district poverty in Bengkulu Province. In addition, the allocation of village funds significantly also has a negative impact on district unemployment in Bengkulu Province. However, the effect of village fund allocation on unemployment and poverty is still relatively low. Therefore, to optimize the use of village funds in poverty and unemployment alleviation, the allocation of village funds should be used for productive things so that they can improve the community's economy.