THE IMPACT OF VILLAGE BUDGET AND NUMBER OF HOUSEHOLDS ON VILLAGE DEVELOPMENT IN SOUTH WEDA DISTRICT

Abstract

This study examines the effects of village government budgets and the number of households on village development in South Weda District during the 2020–2024 period. Village development is measured using the Village Development Index, while the independent variables consist of the village budget, including the Village Fund and Village Fund Allocation, and the number of households. The study employs a quantitative approach using panel data regression to capture variations across villages and over time. Descriptive statistics, classical assumption tests, and panel model selection tests, including the Chow, Hausman, and Breusch–Pagan Lagrange Multiplier tests, are applied. Hypotheses are tested using the t-test, F-test, and coefficient of determination. The results show that the village budget has a positive and significant effect on village development, with a coefficient of 0.086132 and a probability value of 0.0021. The number of households also has a positive and significant effect, with a coefficient of 0.153190 and a probability value of 0.0028. Simultaneously, both variables significantly affect village development, as indicated by an F-statistic of 14.80153 and a probability value of 0.000046. The Village Development Index increased from 34.167 in 2020 to 42.597 in 2024, indicating positive development progress. These findings confirm that fiscal capacity and household demographics jointly play an important role in improving village development. Effective, transparent, accountable, and responsive budget management is therefore essential to support infrastructure, public services, economic empowerment, and sustainable village progress.

Keywords: Village Budget, Village Funds, Households, Village Development Index, Village Development