GOVERMENT SPENDING IN SURABAYA: A TOOL FOR WELFARE OR A MASK FOR MISMANAGEMENT
Keywords:
Government Expenditure, Employee Expenditure, Goods and Services Expenditure, Capital Expenditure, Public Welfare, Human Development Index (HDI)Abstract
This study aims to analyze the effect of government expenditure allocation consisting of employee spending, spending on goods and services, as well as capital expenditure on the welfare of the people in Surabaya. Public welfare is measured using the Human Development Index (HDI). This study uses a quantitative approach with secondary data from the Directorate General of tax Finance Surabaya and the Central Bureau of Statistics Surabaya during the period 2015-2024. The results showed that employee spending has a positive and significant effect on HDI with a coefficient value of 0.044 and significance of 0.032. Spending on goods and services has a positive and significant effect on HDI with a coefficient value of 0.064 and significance of 0.001. Capital expenditure has a positive but not significant effect on HDI with coefficient value of 0.001 and significance of 0.864. Simultaneously, the three variables of government expenditure have a significant effect on public welfare with a value of R2 of 0.946, meaning that 94.6% of the variation in public welfare can be explained by the variable allocation of government spending. The results of this study indicate the importance of proper budget allocation to improve the welfare of the community, especially in the sector of goods and services spending that has the greatest influence.
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