THE EFFECT OF HEALTH SPENDING AND SOCIAL PROTECTION SPENDING ON POVERTY LEVELS IN ACEH PROVINCE
DOI:
https://doi.org/10.5281/zenodo.22268447Keywords:
Health Expenditure, Social Protection Expenditure, Poverty Rate, Panel Data Regression, Aceh ProvinceAbstract
Poverty remains one of the development challenges faced by local governments, including Aceh Province, which continues to record a high poverty rate. Local governments allocate health expenditure and social protection expenditure as fiscal policy instruments to improve public welfare and reduce poverty. However, previous studies have reported inconsistent findings regarding the effects of these expenditures on poverty. Therefore, this study aims to examine the effect of health expenditure and social protection expenditure on the poverty rate in Aceh Province during 2020–2024. This study employed a quantitative approach with an explanatory associative research design. The population consisted of all 23 regencies and municipalities in Aceh Province, using a total sampling technique. Secondary data were obtained from Directorate General of Fiscal Balance (DJPK) and Statistics Indonesia (BPS). Data were analyzed using panel data regression with EViews 13. The results show that health expenditure has a negative but insignificant effect on the poverty rate, with a t-statistic of -1.240 and a significance value of 0.217. Social protection expenditure has a positive and significant effect, with a t-statistic of 3.848 and a significance value of 0.000. Simultaneously, expenditures significantly affect the poverty rate, with an F-statistic of 8.172 and a significance value of 0.000. The R² of 0.127349 indicates that 12.73% of the variation in poverty is explained by the variables, while the remaining variation is explained by other factors. These findings indicate that the effectiveness of public expenditure depends not only on budget allocation but also on targeting accuracy and program implementation quality.
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