Social Assistance Expenditure as Mediating in Regional Original Income, General Allocation Funds, Against the Number of Poor People

Abstract

– This research is motivated by the high level of poverty causing the costs to be incurred for economic growth to be greater, so that it can hamper the rate of economic growth. The purpose of the study was to determine the effect of Regional Original Income and General Allocation Funds on social assistance spending, the effect of Regional Original Income and General Allocation Funds on the number of poor people, and whether social assistance expenditures were able to mediate the relationship between Regional Original Income and General Allocation Funds on the number of poor people. The population is 122 regencies/cities on the islands of Java and Bali, and the sample is taken by a purposive sampling method. The test methodology makes use of path analysis. The results of the study show that Regional Original Income has an effect on social assistance spending, General Allocation Funds have no effect on social assistance spending, Regional Original Income does not affect the number of poor people, the General Allocation Funds affect the number of poor people, and social assistance spending can mediate the relationship between income Regional Original Income on the number of poor people and spending on social assistance cannot mediate the relationship between the General Allocation Fund and the number of poor people on the islands of Java and Bali in 2016-2018. The ability of the variables of Regional Original Income, General Allocation Funds, and Social Assistance Expenditures to explains the variable of Number of Poor People by 43.5%. While the remaining 56.5% is influenced by other factors not examined.