Reallocation Fiscal Policy: Implications for Enhancing Human Capital and Infrastructure Development on Economic Growth and Welfare Society

• Main Author: Hayat Abdullah
• Format: Article
• Language: English
• Published: Bina Praja Press 2014-06-01
• Series: Jurnal Bina Praja
• Subjects: restructuring and reallocation of fiscal; human capital; infrastructure; economic growth; community welfare
• Online Access: http://binaprajajournal.com/ojs/index.php/jbp/article/view/43/40
• ISSN: 2085-4323; 2503-3360

The growth of the nation's economy continues to experience a variety of developments. Various economic challenges still facing the nation. At the Asean Free Trade Area (AFTA) in 2015 soon arrives, the challenge is coming from a variety of factors, both internal factors (domestic) and external (foreign). Restructuring as the evaluation and development of various infrastructure and economic infrastructure. Determination of the state budget and the budget allocation to be of key importance in the economic growth of the nation. The main problem is that correlation is not balanced in fiscal management. Likewise, expenses and income is not directly proportional to the economic growth and social welfare. The purpose of this study was (1) to describe and analyze the implementation of fiscal reallocation as a preference for the government in the way of reformulating policy and fiscal reallocation for sustainable economic development; (2) to determine and analyze the effect of an increase in human capital to economic growth; and (3) describe and analyze the relationship between infrastructure development and economic growth of the welfare of society. Therefore, to improve the welfare of the people of obstruction takes a comprehensive synergy between human capital and the development of adequate infrastructure, of course, this must be supported by the existence of a fiscal restructuring and reallocation policy making substantive and accommodating. So, that the implementation of AFTA in 2015, Indonesia is ready to be a trend setting in the economic growth, community welfare, human resource development and integrative development.