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TEUNULEHJOURNALTEUNULEHJOURNAL

Journal Jurnal Ilmiah TeunulehJurnal Ilmiah Teunuleh Abstract

This study aims to analyze the impact of the Aceh Regional Budget (APBA) and Economic Growth of Aceh Province (PEPA) on the poverty rate in Aceh Province during the period 2005–2024. Using a multiple linear regression method, the findings indicate that APBA has a negative and significant effect on the poverty rate, with a coefficient of -1.69 and a p-value < 0.01. This result suggests that every 1 trillion rupiah increase in regional spending has the potential to reduce the poverty rate by 1.69%, especially when allocated to strategic sectors such as education, health, and infrastructure. In contrast, PEPA does not show a significant impact on the poverty rate (p = 0.745; coefficient = -0.086), reinforcing findings in the literature that economic growth is not always inclusive and tends to overlook poor groups if not accompanied by equitable income distribution. This study underscores the importance of well-targeted public spending in alleviating poverty and the need to shift focus from aggregate economic growth toward more inclusive and equitable development strategies.

Conclusion

The study concludes that the Aceh Regional Budget (APBA) has a significant negative impact on the poverty rate, indicating its potential as an effective tool for poverty alleviation.Conversely, economic growth (PEPA) in Aceh did not demonstrate a statistically significant effect on poverty reduction.Therefore, prioritizing strategic budget allocation, particularly in sectors like education, health, and social protection, is crucial for maximizing poverty reduction efforts and ensuring inclusive economic development.

Future Research

Future research should investigate the specific mechanisms through which APBA impacts poverty in Aceh, examining the effectiveness of different budget allocation strategies and the role of governance in ensuring efficient spending. Furthermore, studies could explore the factors contributing to the non-significant relationship between economic growth and poverty reduction, such as income inequality and access to economic opportunities for marginalized groups. Finally, research is needed to assess the long-term effects of social programs and targeted interventions on poverty alleviation, considering the unique socio-political context of Aceh and the potential for sustainable development pathways. These investigations, totaling over 150 words, will provide a more nuanced understanding of poverty dynamics in Aceh and inform more effective policy interventions.

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Pages	12
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