Efficiency of Public Expenditure in Sumatera before Covid-19 Pandemic Era

Abstract

This study will analyze the efficiency of local government expenditure towards the Human Development Index (HDI) indicators achievement. To see the realization, this study will conduct an efficiency analysis of local government expenditures in Indonesian’s 34 provinces at 2015-2018 periods. Furthermore, this study tries to find out which sectors are affect efficiency, and conducts a descriptive analysis of the effect of the covid 19 pandemic on these sectors. Based on the study result, it can be suggested to the local government as follows; Provinces that have reached maximum efficiency levels must be able to maintain government performance by maintaining a large portion of inputs, and continue to work to increase output. So that the level of community welfare can be maintained, or even increased in the following year. In general, its necessary to optimize in terms of the effectiveness of the budget for education, health and public services on the input side for all provinces. Meanwhile, from the output side, the target Life expectancy and Expected Years of Schooling need to be improved.