Academy of Accounting and Financial Studies Journal (Print ISSN: 1096-3685; Online ISSN: 1528-2635)

Abstract

Local Government Expenditures and Economic Growth in a New Autonomous in Indonesia

Author(s): Toto Gunarto, Ahmad Sentri, Muhammad Said

This research aims to find out the pattern of local government expenditures, especially regional expenditures directly related to economic growth, namely regional expenditures in education, health, agriculture, housing, transportation, and social, and linking the respective superior sectors in the New Autonomous Region (NAR) In Sumatera Island. The result of study shows that potential sectors having criteria of the basic sector, and high growth and competitiveness are still dominated by the agricultural sector and services. Meanwhile, local government expenditures for education, health, and social affairs have a positive and significant effect, housing has a negative and significant effect, and government spending on agriculture and transportation has no significant effect on the growth of the new autonomous regions, with the agricultural sector, Manufacturing, electricity, gas and water supply sectors, construction sector, trade, hotel and restaurant sector, as well as transportation and communications sectors being the ones supporting economic development in New Autonomous Regions (NAR).