ECONOMIC OUTPUT OPTIMIZATION DURING PANDEMIC COVID-19: THE INPUT-OUTPUT TABLE UTILIZATION ON REGIONAL BUDGET REALOCATION PLANNING

Abstract

The COVID-19 has changed the way people interact. Efforts to overcome the impact of the pandemic, in the end, still hamper the development process. The aim of this study is to track the impact of budget reallocation in 2020 and examine changes in each sector by The Input-Output (I-O) Table structure advantage. Output multiplayer and labor multiplier make possible to investigate how variations in final demand affect the output and labor use of each sector in economy. This study is expected to explain how the attainment of Output and employment can be optimized. The financial data of Mamuju Regency Budget realization on 2019 and 2020 is used for the case studies. The impacts of treatment are composed by utilizing simulation process. The study finds that I-O table usage on budget reallocation strategy gives better performance than Regional Budgetary Plan (RAPBD) scheme result for 2020 realization. The manufacturing sector contribute the most in supporting output multiplier and high income. The agricultural sector and manufacturing are the most significant on supporting to yield a high employment multiplier. In conclusion, this study has shown the potential of the I-O- table to be used as budget reallocation planning strategy during the pandemic.