THE IMPACT OF INFRASTRUCTURE SPENDING AND EMPLOYEE SPENDING ON ECONOMIC GROWTH: AN EMPIRICAL STUDY OF 564 LOCAL GOVERNMENT IN 34 PROVINCES IN INDONESIA (2021-2024)
AN EMPIRICAL STUDY OF 564 LOCAL GOVERNMENT IN 34 PROVINCES IN INDONESIA (2021-2024)
Keywords:
infrastructure spending, social assistance spending, subsidy spending, economic growthAbstract
In several provinces in Indonesia in recent years, there have been a number of regions that have experienced budget deficits, so special attention is needed to the realization of government spending. This study aims to determine and analyze the impact of infrastructure spending and employee spending on economic growth in all provinces in Indonesia during 2021-2024. This study uses a quantitative approach with a regression analysis method from secondary data in 34 provinces obtained from the Ministry of Finance data portal. The results of the study show that infrastructure spending and employee spending have an effect on economic growth. The results of this study can be the basis for local governments in formulating appropriate policies in managing regional spending to increase economic growth and minimize the risk of budget deficits
