THE EFFECT OF GOVERNMENT EXPENDITURE ON POVERTY IN INDONESIA FOR THE PERIOD OF 2005-2016

The level of the poverty is a complex problem and it becomes one of the methods to evaluate the successful achievement of the government performance. This research aimed to determine the effect of Government Expenditure on Poverty in Indonesia. The data used in this research is secondary data in the form of time series from 2005-2016 using software Eviews 6.The Methodology of analyses which used in this research are a simple linear regression. The results showed that government spending has a positive and significant effect on the level of poverty in Indonesia. Therefore the increase in government spending can also lead to a decrease in poverty in Indonesia.