ALLOCATION OF REGIONAL EXPENDITURES BUDGET IN THE FRAMEWORK OF INCREASING THE COMPETITIVENESS OF “UMKM”
In 2020 due to the Covid-19 pandemic, Indonesia again experienced an economic crisis due to the health crisis, where economic growth experienced a contraction, especially in the first quarter which reached 5.32%. However, in 2020 during the Covid-19 pandemic crisis, the Indonesian MSME Association (Akumindo) noted that MSMEs were able to contribute 37.3% to GDP in 2020 or around IDR 4,235. In order to increase the potential and develop the number of MSMEs in Kediri City, the Kediri City Government through the Cooperative and UMTK Service (Dinkop UMTK) partnered with Bank Jatim to hand over East Java Provincial Social Assistance for every MSMEs in the context of handling inflation due to rising fuel prices. The research aims to find out that social assistance to MSMEs can increase their more competitive and support economic growth in the regions. This study used a qualitative descriptive method, in which the data obtained from observations, interviews, photographic results, document analysis, as well as field notes and by presented in the form of narrative descriptions. Data analysis used the Miles and Huberman model analysis techniques. The conclusion of this research is government spending budget has increased in total spending 14.33% used for grants and social assistance activities. Meanwhile, for grants and social assistance activities, the budget has increased 50.06%. The increase in regional spending allocations increased MSMEs assisted by the Dinkop which will receive capital assistance from 1,343 recipients in 2022 and in 2023 it is targeted to receive assistance at least 3,000 recipients.
Regional Expenditures, Framework, Competitiveness, UMKM