Effect of poverty budget allocation on poverty reduction performance in Baubau City

Abstract

This research was conducted in Baubau City in 2019, the purpose of study was to analyze the effect of budget allocations for the empowerment of the informal sector, budget allocations for farmers and fishermen, and budget allocations for the development of micro, small and medium enterprises on poverty reduction performance in Baubau City. The results of the analysis show that the budget allocation has a significant effect on the performance of poverty reduction in Baubau City (standardized coefficient = 0.138, C.R = 22573, p = 0.019). The effect of budget allocation for the empowerment of the informal sector on poverty alleviation performance is 0.73 (0.97 X 0.92 X 0.99 X 0.82). The effect of budget allocations for traditional farmers and fishermen on poverty reduction performance is 0.73 (0.97 X 0.92 X 0.99 X 0.82).