The influence of village spending on the village development index in Indonesia

Abstract

The Village Law gives authority to the village government to regulate and manage village finances independently. Village financial management in the form of APBDes is mainly used for spending in the Village Development Implementation Sector and Village Community Empowerment Sector. Indicators of village development success are measured by the Village Development Index. The aim of this research is to determine the extent to which village spending has an effect on increasing the village development index. This research analyzes data using Stata software. The research results show that Expenditures in the Village Development Implementation Sector, Expenditures in the Village Community Development Sector, and Expenditures in the Village Community Empowerment Sector have a significant effect on the Village Development Index.  The implication of this research is to provide input in formulating village financial management policies.