The Effectiveness Of Social Assistance Programs As A Fiscal Stimulus In Mitigating The Impact Of The Economic Crisis On Low-Income Households

Abstract

Global and national economic crises have impacted the well-being of low-income populations, primarily through reduced purchasing power, rising living costs, and limited access to basic necessities. This study aims to analyze the effectiveness of social assistance programs acting as a fiscal stimulus in mitigating the economic impact of crises on low-income communities. A qualitative descriptive approach was employed, utilizing a literature review and secondary data analysis. Data were sourced from official reports and publications by **Statistics Indonesia (BPS), the Ministry of Social Affairs, and the Ministry of Finance of the Republic of Indonesia**, as well as relevant prior studies on poverty, social assistance, household consumption, and fiscal policy. The findings indicate that social assistance programs contribute to maintaining household purchasing power and meeting basic needs, particularly for vulnerable and low-income households. The analysis also reveals that social assistance provides short-term protection against declining household welfare and helps prevent vulnerable households from falling deeper into poverty. However, its effectiveness remains constrained by issues such as inaccurate targeting of beneficiaries, incomplete and outdated recipient data, budget limitations, and uneven distribution. Consequently, the effectiveness of social assistance as a fiscal stimulus depends not only on the amount of aid provided but also on the accurate identification of beneficiaries, distribution mechanisms, and inter-agency coordination. The study concludes that strengthening the integration of beneficiary data, enhancing monitoring and evaluation, and ensuring more accurate and equitable distribution are crucial for improving the effectiveness of social assistance programs in mitigating the economic vulnerability of low-income communities.