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Economic growth is an important reference in measuring the success of economic development, because it shows how much influence the policies implemented by the government on increasing economic growth. The purpose of this study is to determine how the effect of health spending, grant spending and taxes on economic growth in Sumatra. This study used explanatory research and descriptive research methods. The data used is in the form of panel data consisting of 10 provinces on the island of Sumatra, namely Aceh, North Sumatra, West Sumatra, Riau, Jambi, South Sumatra, Bengkulu, Lampung, Bangka Belitung Islands and Riau Islands in 2019-2021. The data used is sourced from the Central Statistics Agency (BPS) and the Directorate General of Financial Balance (DGT). This study used Panel Data Test, FEM, REM and CEM Model Test and Hypothesis Test. The best model selected is the FEM model with results showing that health spending has a positive but not significant influence on economic growth, grant spending has a significant negative influence on economic growth and taxes have a significant positive influence on economic growth on Sumatra Island in 2019-2021.

Economic growth, spending, taxes