The Role of Public Expenditure In Enhancing Community Welfare: A Case Study Of Tangerang City Government

Abstract

This study aims to analyze the role of public expenditure in improving community welfare, using the Tangerang City Government during the 2018–2024 period as a case study. Employing a quantitative approach with descriptive analysis and multiple linear regression, the research examines the relationship between education spending and health spending on the Human Development Index (HDI) as a proxy for community welfare. Secondary data were obtained from the Central Bureau of Statistics and the Tangerang City Budget Realization Reports. The findings show that Tangerang City’s HDI increased consistently from 77.92 in 2018 to 81.53 in 2024, remaining above the average of Banten Province throughout the period. Correlation analysis reveals a strong positive relationship between education spending and HDI (r = 0.847), while health spending shows a moderate correlation (r = 0.692). The multiple linear regression results indicate that education spending has a significant effect on HDI (p = 0.046), whereas health spending does not (p = 0.118). The model explains 74.3% of the variation in Tangerang City’s HDI (R² = 0.743). These findings suggest that investment in education plays a more decisive role in improving community welfare than investment in health. Fluctuations in public spending during the study period reflect the government’s adaptive response to external dynamics, particularly the COVID-19 pandemic. The study recommends optimizing the allocation of education spending, evaluating health programs, and stabilizing public expenditure patterns to enhance the effectiveness of human development efforts.