Abstract
In 2019, exactly one decade of the government expenditure on education in Indonesia (central and local government) was allocated 20 percent. The purpose of this study was to analyze the causality relationship between government budget on education, education success (proxied by the mean years of schooling), and poverty (proxied by the number of poor people) in Indonesia. The data analyzed is secondary data, to be precise panel data from 34 provinces in Indonesia over a period of five years (2015-2019). The analysis technique used is the Granger Causality Test. The results showed that the government budget on education had a significant effect on the mean years of schooling and had a causal relationship with poverty. Meanwhile, poverty has been shown to affect the mean years of schooling. Based on the results of this analysis, it is for the government to consistently prioritize the budget for the education sector because it is proven to have an impact on education success and poverty alleviation. In addition, the government also needs to pursue poverty alleviation programs such as subsidizing cash assistance for student in poverty.
Highlights
The Sustainable Development Goals (SDGs), known as global goals, were adopted by all member states of the United Nations (UN) in 2015 as a universal call to act to end poverty, protect the planet and ensure that all people will have peace and prosperity by 2030.Indonesia is a developing country that will soon become a developed country so it is very serious in realizing the SDGs
2019 is a decade of education budget allocation of 20 percent, this study aims to analyze the causality between the education budget, education success, and poverty in Indonesia
Based on the results of hypothesis testing, it is found that the education budget in Indonesia has a significant effect on the success of education which is proxied by the average length of schooling
Summary
Indonesia is a developing country that will soon become a developed country so it is very serious in realizing the SDGs. Indonesia is one of the countries with the largest population in the world, and in 2045 it is predicted that there will be a demographic bonus in Indonesia (Wisnumurti et al, 2018). The demographic bonus is a condition in which the dependency ratio is low as a result of the high number of people at productive age (15-64 years) when years). The demographic bonus can be an opportunity for the development of a country because the availability of labor will be greater. The demographic bonus can become a burden if the population of productive age does not have the quality to carry out economic activities
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