Analysis of the Indonesian State Revenue and Expenditure Budget (APBN): The Effectiveness of State Expenditure Allocation on Economic Growth and Community Welfare
Year: 2026
Type: preprint
Abstract: The State Revenue and Expenditure Budget (APBN) is the main instrument of the Indonesian government in managing state finances to encourage economic growth and improve community welfare. This study aims to analyze the structure of the Indonesian APBN, the effectiveness of state expenditure allocation, and its impact on economic growth and community welfare. The method used is a literature study and secondary data analysis sourced from the Ministry of Finance, Statistics Indonesia (BPS), and APBN documents for 2023-2025. The results show that state expenditure allocation directed at the education, health, and infrastructure sectors contributes positively to economic growth, but there are still challenges in the form of budget deficits, dependence on debt, and uneven distribution of expenditure between regions. This study concludes that the effectiveness of the APBN is highly dependent on transparency, accountability, and the accuracy of expenditure targeting. Therefore, strengthening performance-based budget planning is needed so that the APBN can run more efficiently and have a direct impact on community welfare. Keywords: APBN, State Budget, State Expenditure, Economic Growth, Community Welfare
Author: Sembiring, Heryanto
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W7225592046