Analysis of Regional Government Financial Performance in Improving Community Welfare


Authors : A Ikbal Husni P; Joko Hadi Susilo; M. Kholilurrohman

Volume/Issue : Volume 5 - 2020, Issue 11 - November

Google Scholar : http://bitly.ws/9nMw

Scribd : https://bit.ly/2WlTE1r

This study aims to determine the performance of local governments in carrying out financial management in improving community welfare.This research was conducted at the local government of Barru Regency using secondary data, namely the 2015-2019 financial reports. Descriptive quantitative method is used in this research by using a mathematical formula, namely financial ratio analysis which includes analysis of independence ratios, effectiveness, efficiency and conformity. The results showed that based on the ratio of independence in general, the regional government of Barru Regency still had a level of dependence on the central government in carrying out government affairs to improve the welfare of the community. Based on the ratio of effectiveness in general, local governments in allocating local revenue against the targets that have been planned in improving community welfare can be implemented very effectively. Based on the efficiency ratio of the government in managing regional revenue to regional spending to improve public welfare, it is generally implemented and managed efficiently. Based on the analysis of the conformity Ratio ratio, local governments generally prioritize the use of regional revenues for operating expenditures in an effort to increase public welfare. The results of this analysis can empirically provide information that in improving public welfare as measured by the financial performance of local governments, it can be implemented by determining the right policies according to performance targets and maximizing local revenue.

Keywords : Independence Ratio; Effectiveness Ratio; Efficiency Ratio;Conformity Ratio, Community Welfare

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