Human Development Index in Papua: the roles of government spending in education and healthcare
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The Human Development Index (HDI) in Papua Province is low compared to other provinces in Indonesia. This study aims to find out how government spending in education and healthcare relates to HDI in Papua Province. Based on panel data regression from 2013–2022, this study finds that government spending in education and healthcare has a significant impact on HDI. The local government earmarks a further 20% of the local budget for education expenditures, excluding teachers' salaries, and increases healthcare spending by 10% of the local budget, excluding salaries. The study reveals that it is particularly essential to prioritize those expenditures in order to maintain the provision of basic services in Papua. The local government oversees these responsibilities, taking into account not only the expenditure but also the citizen's experience. This implies that government spending at the local level plays an essential role in achieving outcomes by improving access to fundamental public services and promoting public welfare.
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