BUDGETING POLICY FOR DEVELOPING AGRICULTURAL SECTORS IN GORONTALO PROVINCE

Abstract

This research aims to (1) analyze the orientation of agricultural sector policy for developing agricultural sectors and GRDP of the sectors in districts/cities in Gorontalo Province and (2) analyze the impact of general allocation fund (DAU), special allocation fund (DAK), and co-administration fund from the Ministry of Agriculture on the GDRP of agricultural sectors in districts/cities in Gorontalo Province. This was quantitative research using secondary data from the official website of Statistics Indonesia (BPS), Directorate General of Regional Fiscal Balance, and Bappeda (Local Development Planning Agency) in districts/cities in Gorontalo Province. Findings indicate that (1) the Incremental Capital Output Ratio (ICOR) for Gorontalo Province was 0.016 and that for districts/cities in Gorontalo Province was 0.086. ICOR less than 1 implied that investments in agricultural sectors should be elevated to enhance gross regional domestic products (GDRP) in the sectors in districts/cities in Gorontalo Province. Investments should be focused on the effective and efficient use of agricultural technology in agricultural domains and (2) general allocation funds (DAU), special allocation funds (DAK), and co-administration funds (TP) from the Ministry of Agriculture simultaneously had a significant impact on gross regional domestic products (GDRP) of agricultural sectors in districts/cities in Gorontalo Province at a determinant value of 97.019%. Meanwhile, it was partially figured out that general allocation funds (DAU) and co-administration funds (TP) from the Ministry of Agriculture had a positive significant impact on gross regional domestic products (GRDP) of agricultural sectors in districts/cities in Gorontalo Province.