The Relationship of Budget Expenditure in the Education Sector to HDI in the Island of Java

Abstract

This study aims to analyze the relationship between budget expenditure in the education sector and the Human Development Index (HDI) in six provinces on the island of Java in 2021. The approach used is a quantitative method with Pearson correlation analysis techniques using the SPSS program. The research data is secondary data obtained from official publications of the Central Statistics Agency and the Directorate General of Financial Balance. The results of the analysis showed that the correlation coefficient value was 0.157 with a significance level of 0.767, which means that there is a positive but very weak and insignificant relationship between education budget expenditure and Human Development Index. The value of the determination coefficient (R²) of 0.0246 shows that education expenditure is only able to explain 2.46% of the variation in the Human Development Index, while 97.54% is influenced by other factors. Thus, the null (H₀) hypothesis is accepted, which states that budget expenditure in the education sector has no significant effect on HDI. These results confirm the importance of the effectiveness and equitable distribution of education policies compared to the amount of budget allocation alone in improving human development.