MEASURING THE EFFICIENCY AND EFFECTIVENESS OF REGIONAL FISCAL IN MALANG REGENCY, EAST JAVA PROVINCE INDONESIA

Abstract

An analytical tool often used in budget management and the success of regional development is the use of efficiency and effectiveness ratios of regional financial management. Aspects in managing regional finances include the authority of regional financial management, general principles and structure of the Regional Revenue and Expenditure Budget. The performance of regional governments in managing finances can be seen using efficiency and effectiveness ratio analysis. This study aims to determine and analyze the level of efficiency and effectiveness in regional financial management in the Malang Regency government. This study uses secondary data in the form of the Regional Revenue and Expenditure Budget for the 2018-2022 period of the Malang Regency Government. This data is then analyzed using efficiency ratios and effectiveness ratios. This study concluded that the average level of efficiency during the period 2018 to 2022 is classified as good with an average of 3.39%. The level of effectiveness of regional financial management of the Malang Regency Government also shows very effective with an average during the period 2018 to 2022 of 106.37%. Optimization of the use of digital financial management is needed so that in the future, real-time financial conditions can be known.