The Influence of Government Spending and Audit Opinion on the Human Development Index in Java

Abstract

This study aims to analyze the influence of government spending and audit opinion on the Human Development Index in six provinces on the island of Java, namely DKI Jakarta, West Java, Central Java, East Java, DI Yogyakarta, and Banten, during the 2022 period. The approach used is quantitative, with secondary data obtained from the Central Statistics Agency and the Financial Audit Agency. Data analysis was carried out using SPSS version 26 through classical assumption tests and multiple linear regression. The results of the study show that the audit opinion of all provinces on the island of Java obtained the title of Reasonable Without Exception, indicating good regional financial governance. However, the regression results showed that government spending had no significant effect on HDI, with a significance value of 0.454 (> 0.05). An R² value of 0.146 indicates that only 14.6% of the variation in HDI can be explained by government spending. These findings indicate that the large allocation of public spending has not guaranteed an increase in human development, so it is necessary to increase the efficiency and effectiveness of the use of the budget to support people’s welfare.