Abstract :
The economic war that was going on between strong countries such as America and China had a wide impact on various countries including Indonesia. This study aims to examine how the Influence of the State Development and Expenditure Budget on the 2010-2020 Defense Budget. The method used in this research is quantitative. The results of the study indicate that in terms of economic growth, there are contradictions in both the estimation results and the theory, where based on the estimation results, economic growth has a significant negative effect on the defense budget. The Keynesian view is that the increase in government spending will encourage an increase in demand for various goods and services produced by the economy in aggregate so as to encourage economic growth. In other words, state spending, including defense spending, is an important and ideal policy tool used by the government in an effort to create and increase quality economic growth.
Keyword :
Threat, State budget, Economy, Defense