The Impact of School Operational Assistance Fund and Regional Gross Domestic Product to Education

School Operational Assistance Fund (SOAF), provided by the government and an increase in Regional Gross Domestic Product (RGDP), should increase public interest in education and reduce dropout rates. However, in some cases, it was found that the increase in RGDP and the promulgation of policies related to school tuition assistance did not reduce the decline in the number of students dropping out. Education itself is one of the driving economic growth factors, especially in developing countries such as Indonesia. This chapter aims to determine whether school grant programs and RGDP impact students who drop out. Our evidence presents a negative correlation between SOAF and dropout, and there is no significant effect. This study for knowledge implies that the student aid program's implementation system has not yet reached its best state, so the program will not significantly impact education. In the PDRB analysis, increasing economic growth does not necessarily improve education. The implication in practice shows the importance of planning, monitoring, and evaluating government plans, especially plans related to the carrying capacity of a country's economic growth in the short and long term.