Government Financial Performance Research Articles

Tracking the Trail of Regional Financial Performance: Economic Growth as a Bridge towards Poverty Reduction

This study aims to see and determine the indirect influence of regional government financial performance on poverty through economic growth in Indonesia. The analysis method used is multiple linear regression and Sobel test using secondary data from 34 provinces in Indonesia in 2014-2021. The findings of this study indicate that regional financial performance as proxied by the effectiveness ratio and efficiency ratio on poverty directly has an influence, but indirectly where economic growth which is an intermediary to see the influence of regional financial performance on poverty shows no influence, this shows that economic growth cannot mediate the influence of regional financial performance on poverty.

Determinan Kinerja Keuangan Provinsi Gorontalo Tahun 2017-2022

This study aims to analyze the effect of Local Revenue, General Allocation Fund, General Allocation Fund, Special Allocation Fund and Revenue Sharing Fund on the Financial Performance of Gorontalo Province Local Government. The data used in this study is secondary data sourced from the Directorate General of Balance of the Ministry of Finance of the Republic of Indonesia obtained from 6 regencies / cities in Gorontalo Province. This study uses Multiple Linear Regression Analysis of Panel data using the Fixed Effect Model (FEM). The results of this study indicate that 1). Regional Original Revenue has a positive and significant effect on Local Government Financial Performance, meaning that every increase in PAD by 1 rupiah can improve Regional Financial Performance. 2). The General Allocation Fund has a positive and significant effect on Regional Financial Performance, meaning that every increase in the General Allocation Fund by 1 rupiah can improve Regional Financial Performance. 3). The Special Allocation Fund has a positive and significant effect on Regional Financial Performance, meaning that any increase in the Special Allocation Fund by 1 rupiah can improve Regional Financial Performance. 4). Revenue Sharing Fund has a negative and significant effect on Regional Financial Performance, meaning that every increase in Revenue Sharing Fund of 1 rupiah can reduce Regional Financial Performance.

ANALISIS EFEKTIVITAS KINERJA KEUANGAN DALAM PENGELOLAAN ANGGARAN PEMERINTAH DAN BELANJA DAERAH PADA KOTA SURABAYA

This study aims to determine the effectiveness of the financial management performance of the Surabaya City Government for the 2015-2019 period. This study uses a quantitative descriptive method using an analysis of the effectiveness of regional financial performance, analysis of regional financial independence and analysis of compatibility (operational expenditure and capital expenditure). Using secondary data, the data processed is the Summary of Regional Revenue and Expenditure Budgets for the 2015-2019 Fiscal Year. The Regional Financial Independence of the Surabaya City Government has reached a very good level, which shows a pattern of delegative relations, which means that the intervention of the Central Government is no longer there because the regions are completely independent in implementing regional autonomy. The level of effectiveness of the Surabaya city government's financial management is fairly effective because from 2015 -2019 the effectiveness of the Surabaya city government's financial performance has always reached the target which is effective. However, the compatibility of the Surabaya government's financial performance has not been balanced. According to the description and calculations above, most of the funds owned by the Surabaya City Government are still prioritized for operational expenditure needs so that the capital expenditure ratio is relatively small.

The Effect of Sharia Investment and Government Policy on the Financial Performance of MSMEs in West Java

This study investigates the impact of Sharia investment and government policy on the financial performance of Micro, Small, and Medium Enterprises (MSMEs) in West Java. Utilizing a quantitative approach, data was collected from 120 MSMEs through structured questionnaires employing a Likert scale ranging from 1 to 5. The collected data was analyzed using SPSS version 26 to determine the correlation and effect of the independent variables—Sharia investment and government policy—on the dependent variable, financial performance. The findings indicate a significant positive relationship between Sharia investment and financial performance, as well as between government policy and financial performance. This suggests that both Sharia-compliant financial practices and supportive government policies play crucial roles in enhancing the financial outcomes of MSMEs in the region. The results underscore the importance of adopting Sharia investment strategies and fostering government policies that support the growth and sustainability of MSMEs.

The Influence of Local Government Size and Economic Growth on Local Government Financial Performance

Performance measurement is an important element in assessing the effectiveness of policy implementation, including financial regulations at the local government level. By measuring financial performance, we can obtain valuable feedback regarding the suitability and accuracy of implementing these regulations. The aim of this research is to analyze the influence of local government size and economic growth on local government financial performance. In this study, the sample used in this research was a purposive sampling sample, with the population of Regional Governments and Regency/City Regional People's Representative Councils (DPRD) in Indonesia in 2018.

Effect of Budget Participation, Transparency and Internal Control of Accountability and Local Government Financial Performance Bulukumba Regency

Objective: The study aimed to analyze several key factors affecting the accountability and financial performance of the Regional Government of Bulukumba Regency. Specifically, it sought to examine (1) the effect of budget participation on accountability and financial performance, (2) the impact of transparency on accountability and financial performance, and (3) the role of internal supervision on accountability and financial performance. Methods: This research utilized a quantitative approach, gathering primary data through questionnaires distributed to 201 respondents. The study was conducted from September 2022 to February 2023. Data analysis was performed using Structural Equation Modelling (SEM) with the assistance of Amos Version 25 and SPSS Version 25. Results: The findings of the study revealed several key insights: (1) Budget participation, transparency, and internal supervision were found to have a positive and significant effect on accountability. (2) Accountability, in turn, positively and significantly impacted the financial performance of the Regional Government of Bulukumba Regency. (3) Both budget participation and transparency were found to have a positive and significant effect on financial performance. (4) Internal supervision showed a positive but not significant effect on financial performance. (5) Overall, budget participation, transparency, and internal supervision positively and significantly influenced the financial performance of the Regional Government of Bulukumba Regency through the mediation of accountability. Conclusion: The study concluded that budget participation, transparency, and internal supervision play crucial roles in enhancing accountability and financial performance within the Regional Government of Bulukumba Regency. Accountability serves as a significant mediator in translating these factors into improved financial outcomes. The findings underscore the importance of fostering participatory budgeting, transparency, and robust internal supervision to drive better governance and financial results.

Pengaruh Rasio Efisiensi dan Rasio Efektifitas PAD Terhadap Belanja Modal Pada Kabupaten/Kota di Jawa Barat

APBD in the form of capital expenditure allocation requires good management in order to obtain effective and efficient results. Therefore, good financial performance is needed, which is measured using financial analysis tools in the form of ratios. The ratios used in the analysis of government financial performance are efficiency ratios and PAD effectiveness ratios. This research was conducted with the aim of knowing the effect of the efficiency ratio and the effectiveness ratio of PAD on the allocation of capital expenditure in districts/cities in West Java. This study uses a quantitative research type where the data used is secondary data in the form of financial reports by taking the 2018-2022 budget realization report. The samples used in this study amounted to 42 samples. The analytical tools used in this study are Data Normality Test, Product Moment Correlation Analysis, Multiple Correlation, Multiple Regression Analysis, Partial Test (t test) and Simultaneous Test (f test), Coefficient of Determination. The results of the study partially show that there is no effect of the efficiency ratio on capital expenditure in regencies/cities in West Java. Partially there is no effect of the effectiveness ratio on capital expenditure in districts/cities in West Java. The results of the study simultaneously show that there is no effect of the efficiency and effectiveness ratio of PAD on capital expenditure in regencies/cities in West Java.

The Impact of Regional Original Income, Balancing Funds, and Fiscal Stress on Capital Expenditures and Regional Government Financial Performance

Over the last few years, the financial performance of district/city governments in Jambi province has decreased. This condition can be seen from the regional financial independence which is still very low. Therefore, this research aims to analyze more deeply the influence of local revenue, balancing funds, and fiscal stress on regional government financial performance, both direct and indirect influences through capital expenditure. This research is quantitative descriptive. The research was conducted in all districts/cities in Jambi province and used secondary data. Data was obtained through the BPK-RI Jambi Province Representative page in the form of audited regional government financial reports with an observation period from 2017-2022. The data analysis method uses the path analysis method. The study's findings demonstrate that original revenue that is largely generated locally and balancing funds have a major and favorable impact on capital spending. Capital spending is not significantly impacted by fiscal stress. The financial performance of local governments is not significantly impacted by local revenue or fiscal strain. The financial performance of local governments is significantly and negatively impacted by partly balancing funds. The financial performance of local governments is positively and significantly impacted by capital expenditures. Additionally, it was shown that capital spending might moderate the impact of balancing budgets on the financial performance of local governments. But, capital spending does not mitigate the impact of local revenue and fiscal strain on the financial performance of local governments. This research has implications for formulating policies to increase local original income, determining the allocation of capital expenditure and improving the financial performance of regional governments in districts/cities in Jambi province.

Analysis of Regional Government Financial Performance and Its Impact on Poverty in South Sumatra

Analysis of Regional Government Financial Performance and Its Impact on Poverty in South Sumatra

Local Government Financial Performance Reviewed from Financial Ratios and Indexes

This research aims to analyze the financial performance of the Ambon City regional government in terms of financial ratios in implementing regional autonomy. This research is a descriptive qualitative research type. Using documentation study data collection techniques or by tracing which is done by collecting secondary data, namely regional government financial report data for 2012 - 2015 from related agencies. The data analysis technique used is the descriptive analysis technique to assess financial performance, namely the regional independence ratio, effectiveness ratio, regional financial activity/harmony ratio and regional financial growth ratio, assessing financial capability using the degree of fiscal autonomy ratio and routine capability index. The research results found that the Regional Financial Independence Ratio (RKKD) of Ambon City during the three year observation period from 2013 to 2015 was on a scale of 0% - 25%, which means it was classified as "poor". Regional Financial Activity/Harmony Ratio (RAKD) for Direct Expenditures (BL) and Indirect Expenditures (BTL) in Ambon City, where during the observation period Indirect Expenditures (BTL) had a large portion compared to Direct Expenditures. The amount of indirect expenditure has reached more than 65%, which means that the Ambon City Government spends more on personnel expenditure than on public services. Growth ratio, it is known that of the four elements of the APBD, namely PAD, TPD, Indirect Expenditure and Direct Expenditure, the Ambon City government was only able to maintain good PAD growth during the observation period from 2013 to 2015, the rest of the growth rate still needs to be improved. The DOF ratio of Ambon City during the three year observation period from 2013 to 2015 was "very poor", below 10%, and that means that the Ambon City Government has very poor ability to finance government activities. The Routine Capacity Index (IKR) for the three year observation period from 2013 to 2015 shows that the ability of the Ambon City government to spend routine expenditures with local original income is still "deficient", namely less than 20% or in other words more than 80% of the City's routine expenditures. Ambon is covered by funds from the center.

Pengaruh Kinerja Keuangan Pemerintah Daerah Terhadap Alokasi Belanja Modal

This study was conducted in western Indonesian cities during 2020-2022. This study aims to determine how the influence of local government financial performance on capital expenditure in western Indonesian cities both simultaneously and partially as seen from the fiscal decentralization ratio, effectiveness ratio, and efficiency ratio. This study uses a quantitative and descriptive analysis approach. The population of this study was 64 in western Indonesian cities using nonprobability sampling technique, so the sample included 192 financial statements from 3 years of observations. As well as technical documentation collects data through the regional government director’s balance sheet website. The analytical method in this study is panel data regression. The results testing with panel data regression using the Fixed Effect Model (FEM) show that financial performance simultaneously influences capital expenditure in western Indonesian cities during 2020-2022. Figure F > F table result obtained (2.853526 > 2,65), significance (0,000000 < 0,05). From the partial test results fiscal decentralization ratio has an negative effect and significance on capital expenditure allocation, effectiveness ratio has an positive effect and significance on capital expenditure allocation, and efficiency ratio has an positive effect and significance on capital expenditure Allocation in western Indonesian cities during 2020-2022.

EFFECTIVENESS OF FINANCIAL PERFORMANCE OF PROVINCIAL GOVERNMENTS IN INDONESIA: EVIDENCE DURING COVID-19

The nominal number of cases of inefficiency, inefficiency, and ineffectiveness shows a significant increase, reflecting the government's financial performance in managing finances. This research aims to analyze the financial performance of provincial governments in Indonesia, which is measured through indicators of capital expenditure, local revenue, and balancing funds in the initial period of COVID-19 (2019-2020) and the transition period of COVID-19 (2021-2022). 133 local government budget realization reports in Indonesia were analyzed using panel data regression. The research results show that local revenue significantly affected the local government's financial performance in these two periods. However, balancing funds only had a substantial impact during the early period of COVID-19. Capital expenditures negatively and insignificantly affect financial performance during the initial and transition periods. The results of this research provide an overview of the impact of COVID-19 on the financial performance of provincial and regional governments in Indonesia.

Analisis Kinerja Keuangan Pemerintah Dalam Meningkatkan Pendapatan Asli Daerah Provinsi Nusa Tenggara Timur

This study aims to determine the analysis of government financial performance in increasing PAD in East Nusa Tenggara Province. The type of research used in this study is descriptive with a quantitative research approach. The source of data in this study is secondary data with document study data collection techniques. The technical data used in this research is secondary data with data collection techniques of document study. The data analysis techniques used are financial independence ratio analysis, financial effectiveness and efficiency ratio analysis and financial decentralization ratio analysis. The results of this research show that the Regional Financial Independence Ratio during the 2019-2023 period has slightly increased. However, the level of independence is still relatively low because there is still a dominant role of the central government. The Regional Original Revenue (PAD) Effectiveness Ratio in NTT Province during the 2019-2023 period can be categorized as less effective. The Efficiency Ratio of Regional Original Revenue (PAD) shows that the financial performance of the NTT Province government can be categorized as very efficient. For the average ratio of the degree of decentralization within a period of 5 (five) years, it has slightly increased every year, but its financial capacity is still in the less capable category.

Measuring Local Government Financial Performance With Financial Ratios

This research aims to analyze the financial performance of local government in the Toba Regency. The data source uses secondary data in the form of Toba Regency government financial reports for 2020-2022. Data were analyzed using a quantitative descriptive approach. The financial performance of the Toba Regency government is measured using eight financial ratios. The results of the research show that the financial performance of the Toba Regency government in terms of regional financial independence, regional financial dependence, and the degree of fiscal decentralization obtained meagre results. The level of effectiveness of local original revenue (LOR) and the effectiveness of local taxes obtained very effective results. The level of LOR efficiency and regional tax efficiency obtained very efficient results. The degree of contribution of regionally owned enterprises (ROEP) resulted in low contribution results. Overall, the Toba Regency needs to improve at implementing and managing finances. This research can be a reference for the Toba Regency government in improving financial performance through eight financial ratios so that budget use is effective and efficient.

PENGARUH OPINI AUDIT BPK DAN BELANJA MODAL TERHADAP KINERJA KEUANGAN PEMERINTAH DAERAH

This study analyzes the Effect of BPK Audit Opinion and Capital Expenditure on Local Government Financial Performance in West Java Province Cities and Regencies in 2018- 2021. This type of research uses quantitative research methods. The population and sample in this study were 108 cities and districts with a period of 4 years. The population and samples are West Java cities and regencies located in the Directorate General of Financial Balance, Ministry of Finance and the Financial Audit Agency which publishes the results of budget realization reports and inspection results. Retrieved from https://jabar.bpk.go.id and https://djpk.keimeinkeiui.go.id websites. The data analysis technique uses panel data regression analysis using Eviews 9.0 software. The results showed that the BPK Audit Opinion had a negative effect on the financial performance of local governments, while Capital Expenditure had a positive effect on the financial performance of local governments.

INFLUENCE OF REGIONAL GOVERNMENT (PEMDA) CHARACTERISTICS ON AUDIT OPINION WITH REGIONAL GOVERNMENT (PEMDA) FINANCIAL PERFORMANCE AS A MEDIATION VARIABLE

Purpose - With local government financial performance serving as a mediating variable, this study intends to investigate the impact of local government characteristics, whose indicators are the degree of reliance and audit results on audit opinions Design/methodology/approach - The Regency/City Government in Banten Province from 2018 to 2021 serves as the study's population. In this investigation, 8 samples were evaluated using the saturation sampling technique. The financial reports of each PEMDA, whose information was collected from the Banten Province Representative Office of the Financial Audit Board (BPK), served as the source of the data for this study. Logistic regression analysis and mediation regression analysis were the analytical techniques employed in this investigation Finding - The outcomes of this study suggest that the amount of reliance and audit findings have a favorable effect on audit opinion, but that this effect is stronger when measured using financial performance as a mediating variable. Originality - Paper Type – Research Paper Keywords: Dependency Level, Audit Findings, Audit Opinion, Local Government Financial Performance

INFLUENCE OF REGIONAL ORIGINAL REVENUE AND BALANCING FUNDS ON THE FINANCIAL PERFORMANCE OF THE REGIONAL GOVERNMENT OF JOMBANG DISTRICT

Regional government financial performance measures regional independence in managing potential sources of regional original income (PAD) as the primary value for financing regional expenditure so that it does not depend on central government balancing funds. This research aims to test and determine the influence of (PAD) and balancing funds on the financial performance of the Jombang Regency regional government. Quantitative methods are used in this type of research. The sample for this research is five years from the Jombang Regency regional government budget realization report for 2018-2022. The non-probability sampling method was used in this research, and saturated sampling techniques were utilized. The classical assumption test, multiple linear regression analysis, and hypothesis testing were used as data analysis using SPSS 26 tools. The results of this research were that PAD and balancing funds had a positive and significant effect on the financial performance of the Jombang Regency regional government

Pengaruh Pendapatan Asli Daerah Dan Pendapatan Transfer Terhadap Kinerja Keuangan Pemerintah Daerah Provinsi Jawa Timur

This research aims to examine the influence of Regional Original Income, General Allocation Funds and Special Allocation Funds on Regional Government Financial Performance. Using 38 samples of Regional Revenue and Expenditure Budget Realization Reports (APBD) for Regency/City Regional Governments in East Java Province for the 2020-2022 period which have been officially published and audited by the East Java Province Representative Financial Audit Agency (BPK Jatim). Testing was carried out using multiple regression. The test results prove that Regional Original Income has an influence on Regional Government Financial Performance. General Allocation Funds and Special Allocation Funds have no effect on Regional Government Financial Performance.

REGIONAL REVENUES, AUDIT OPINIONS, LOCAL GOVERNMENT FINANCIAL PERFORMANCE: THE MODERATING ROLE OF CAPITAL EXPENDITURE

The existence of regional autonomy policies causes regional governments to have their respective authorities in administering government. It encourages increased performance and accountability. In addition, the Covid-19 outbreak that has hit has made people increasingly pay attention to the performance of local governments. This research examines the factors influencing the financial performance of local governments in districts/cities in South Sulawesi. The independent variables used are regional revenue and audit opinion. This study also aims to investigate the effect of capital expenditure as a moderator in the connection between the independent and dependent variables. This study employs secondary data from www.djpk.kemenkeu.go.id and https://e-ppid.bpk.go.id/, as well as multiple linear regression analytic approaches. This research finds that regional revenue significantly negatively affects local government financial performance. In addition, audit opinions significantly positively influence financial performance. However, capital expenditure does not have a moderating role in these two relationships.

Pengaruh Pendapatan Asli Daerah, Dana Perimbangan dan Belanja Modal terhadap Kinerja Keuangan Pemerintah Kabupaten/Kota di Pulau Sumatera Tahun 2021

This study aims to analyze the effect of local original income, balancing funds, and capital expenditure on the financial performance of district/city governments on the island of Sumatra in 2021. This study used a quantitative approach. The samples taken in this study were based on predetermined criteria. The results of the sample selection of 106 regional governments which are Regency / City regional governments on the island of Sumatra in 2021. Multiple regression analysis to test the hypothesis was carried out using SPPS 29 which showed the results of the study that local original revenue had a significant positive effect on local government financial performance, while balancing funds and capital expenditure had a significant negative effect on local government financial performance.