Indonesia Conference Directory

There are pros and cons in examining the relationship between education and health budgets and economic growth. The results of the study show a variety of research findings. This study wants to examine the relationship between government spending in the education and health sectors and economic growth in the country of Indonesia. The variables used are GDP, government education, and health expenditure in 1980-2017. The method used in this study is the Granger causality test. The results showed that the education budget was not statistically significant in affecting vice versa GDP. While the results of calculations for the health budget significantly influence GDP and GDP also affect health. The implication of this finding is that the education sector budget needs to be maximized in order to be able to contribute to national income.