REGIONAL FISCAL POLICY AS AN INSTRUMENT FOR POVERTY REDUCTION IN SIX DISTRICTS/CITIES INCLUDING INFLATION IN CENTRAL JAVA

This study aims to analyze the effect of social assistance spending, regional taxes, and whether there is a difference in poverty conditions before the Covid-19 pandemic and during the Covid-19 pandemic on poverty in six districts/cities including inflation in Central Jawa. The research method used is regression of panel data and the best estimation model is the Random Effect Model (REM). The results of the analysis produced findings (1) social assistance spending and regional taxes have a negative and significant effect on poverty, (2) there is no difference in poverty conditions in years affected by Covid-19 and years not affected by Covid-19. The implications of the conclusions are that in an effort to eradicate poverty, the government is expected to optimize the provision of social assistance, allocation and distribution of social assistance spending to overcome poverty. It is hoped that the government can also allocate regional taxes efficiently to finance development programs.