The Effect of Fiscal Policy Literacy on Public Trust in The Government
Keywords:
Fiscal Literacy; Public Trust; Government Transparency; Accountability; Quantitative SurveyAbstract
The purpose of this study is to investigate the relationship between fiscal policy literacy (X) and public trust in the government (Y). The main focus of this study is the lack of public understanding of fiscal policy instruments, objectives, and mechanisms, which can affect their perceptions of transparency, accountability, and effectiveness of government budget management. To ensure participants understood fiscal policy, this study was conducted in Palu City and involved 35 respondents selected purposively. This study used a quantitative approach and collected data through questionnaires. The extent to which fiscal policy literacy affects the level of public trust was measured through simple linear regression dataanalysis. This study emphasizes the importance ofimproving fiscal policy literacy as a strategic step to increase legitimacy and public trust in the government because the findings show that public understanding of fiscal policy is positively and significantly correlated with public trust. The analysis results show that an R value of 0.403 indicates a weak to moderate relationship between variables X and Y. An R Square value of 0.162 indicates that variable X can only explain 16.2% of the variation in variable Y, while the remaining 83.8% is influenced by other factors outside the model. These findings show that variable X has an effect, but is not a dominant factor on variable Y.
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