THE EFFECT OF GOVERNMENT EXPENDITURE ON EDUCATION AND INFORMATION AND COMMUNICATION TECHNOLOGY (ICT) ON THE QUALITY OF HUMAN RESOURCES REPRESENTED BY THE VALUE OF INDONESIA^S HUMAN DEVELOPMENT INDEX (HDI) Jarudo Damanik (a*), Indra Maipita (b), Fitrawati (b)
Faculty of Economics, State University Of Medan Indonesia
Abstract
Government spending on education and information and communication technology (ICT) are two strategic expenditures in the national development plan. Both expenditure sectors have a considerable influence in the national fiscal allocation, so the benefits of this strategic expenditure are expected to have a significant impact on the quality of Indonesian people. This study aims to analyse the effect of government expenditure in the Education and Information and Communication Technology (ICT) sectors on the value of Indonesia^s human development index (HDI). The relationship between the influence of government expenditure on the two sectors is tested through 2 (two) stages, namely the effect of each government expenditure variable, then continued with simultaneous testing of both variables on the value of Indonesia^s Human Development Index (HDI). The data used in this study is quantitative time series data, with a period of 34 years of data observation from 1990 to 2023. The source of data for this research is from the Ministry of Finance of the Republic of Indonesia for data related to government spending, while for data on Indonesia^s Human Development Index (HDI) sourced from the Human Development Report published by the United Nations Development Programme (UNDP). The data analysis technique used in this study uses multiple linear regression with the Autoregressive Distributed Lag (ARDL) model. The results of the study found several scientific facts, where partially, government spending on the education sector has a significant influence on Indonesia^s HDI in the long term and short term. Government spending on the Information and Communication Technology (ICT) sector has a positive, but insignificant influence on Indonesia^s Human Development Index (HDI), both in the long term and short term. Meanwhile, simultaneously, the two spending sectors, namely government spending on education and Information and Communication Technology (ICT) have a positive and significant influence on the value of the Human Development Index in Indonesia
Keywords: Fiscal Policy, Government Expenditure, Human Development Index (HDI), Education, Information and Communication Technology (ICT), ARDL Model
Topic: Economics, Social and Early childhood Education
