Journal of Socioeconomics and Development. 2020. 3(2): 47–56 Journal of Socioeconomics and Development https://publishing-widyagama.ac.id/ejournal-v2/index.php/jsed Government expenditure and poverty reduction in the proliferation areas of Central Kalimantan, Indonesia Andrie Elia, Yulianto, Harin Tiawon, Sustiyah*, and Kusnida Indrajaya University of Palangka Raya, Palangka Raya, Indonesia *Correspondence email:
[email protected] ARTICLE INFO ABSTRACT ►Research Article The purpose of this study was to analyze the relationship between government expenditure and poverty, and also linked to the regional economic activity and Article History labor absorption. The study used a quantitative research by means of time series Received 13 June 2020 data collected from the new proliferation area in Central Kalimantan, including Accepted 28 July 2020 Pulang Pisau, Katingan, East Barito, Seruyan, Gunung Mas, Murung Raya, Published October 2020 Sukamara, and Lamandau. Analysis method used the path analysis to estimate Keywords statistical parameters indicating relationship between variables. The research government expenditure; result shows that poverty significantly effects on government expenditure in the grdp; labor absorption; new eight regency in Central Kalimantan province. Poverty has also had an Kalimantan; poverty impact on government expenditure through the provision of employment and Gross Regional Domestic Product (GRDP). The local government is expected to JEL Classification manage more effectively regional finances that focus on community economic H72; I38; J21 activities. The policy also opens investment opportunity to increase economic activity and create jobs based on the prominent regional product, such as agriculture, plantation and mining sectors. Investment can increase employment and indirectly reduce poverty. Citation: Elia, A., Yulianto, Tiawon, H., Sustiyah, and Indrajaya, K.