Budget Effectiveness of Regional Development Functions in Indonesia: Analysis of 34 Provinces in 2024
DOI:
https://doi.org/10.59890/ijist.v4i9.50Keywords:
Budget Effectiveness, Regional Spending, Development Function, Fiscal Decentralization, Local Government.Abstract
The effectiveness of regional budget implementation is an important indicator for assessing the ability of local governments to translate fiscal planning into development outcomes. This study aims to analyze the effectiveness of development function budgets and identify disparities in fiscal implementation across provinces in Indonesia in 2024. The study employs a descriptive quantitative approach by comparing budget allocations and actual expenditures across nine development functions in 34 provinces, including general public services, public order and safety, economic affairs, environmental protection, housing and public facilities, health, tourism, education, and social protection. The analysis was conducted by measuring expenditure effectiveness, identifying budget gaps, and comparing implementation performance across regions. The results indicate variations in budget implementation effectiveness among provinces and development functions. Education demonstrated the highest implementation effectiveness, while the health function experienced the largest gap between budget allocation and realization. Regional analysis also revealed differences in fiscal implementation capacity, indicating that fiscal resources must be supported by strong governance quality and institutional capacity. This study highlights that improving regional expenditure effectiveness depends not only on the availability of financial resources but also on the ability of local governments to effectively plan, implement, and evaluate development programs.
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