Authors:
Fatimatuzzahro
1
and
Sri Herianingrum
2
Affiliations:
1
Universitas Airlangga Surabaya, Indonesia
;
2
Master of Science in Islamic Economics, Universitas Airlangga and Surabaya, Indonesia
Keyword(s):
Public Expenditure, Strategy, Government Policy, Islamic Economy
Abstract:
This paper aims to find a strategy of public expenditure on the social funds sector in poverty alleviation of Islamic economic perspective in Indonesia. This paper uses a comprehensive descriptive analytical methodology using data from documents sourced from the Ministry of Finance of Indonesia and the way Islam in developing the economy under the theory of public expenditure of social funds sector, the cause of poverty of Islamic economic perspective, the direction of policy and government strategy and Islamic strategy in poverty alleviation. From the analysis, it is found that the Government's strategy is to direct the fiscal policy that supports the livelihood of underprivileged people, especially public expenditure which is targeted social assistance, while the strategy in Islamic perspective is the empowerment of Islamic economy, the deepening of shariah financial market and the strengthening of research and education as well as the optimization of the function of zakat. The opt
imization of sharia economic strategy is expected to decrease the percentage of expenditure on the social funds sector, so that public expenditures can be optimized in other sectors of education and health, as well as reducing the debt and can increase economic growth in Indonesia.
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