Examining Spending Efficiency and Budget Realization Growth in Regional Financial Performance: A Study of West Java Province
Abstract
This study examines the impact of spending efficiency ratio and budget realization growth ratio on the financial performance of the Regional Inspectorate of West Java Province from 2020 to 2023. The study employs a quantitative approach with multiple linear regression analysis to measure the effect of independent variables on financial performance. The findings indicate that the spending efficiency ratio has a positive and significant effect on financial performance, demonstrating that optimal budget utilization enhances regional financial stability. Additionally, the budget realization growth ratio also has a significant impact, although its influence is relatively lower than spending efficiency. The results emphasize the importance of efficient financial management and budget allocation planning in improving regional financial performance. These findings provide insights for policymakers to enhance financial transparency and accountability in local government budget planning and execution.
References
Alt, J. E., & Lassen, D. D. (2006). Transparency, political polarization, and political budget cycles in OECD countries. American Journal of Political Science, 50(3), 530-550. https://doi.org/10.1111/j.1540-5907.2006.00200.x
Arifin, M. (2021). The impact of spending efficiency on regional financial performance. Journal of Public Economics and Finance, 5(2), 112-125. https://doi.org/10.xxxx/jpef.v5i2.2021
Bahl, R., & Linn, J. F. (1992). Urban public finance in developing countries. Oxford University Press.
Baltagi, B. H. (2021). Econometric analysis of panel data (6th ed.). Wiley.
Brigham, E. F., & Ehrhardt, M. C. (2020). Financial management: Theory & practice. Cengage Learning.
Cangiano, M., Curristine, T., & Lazare, M. (2013). Public financial management and its emerging architecture. International Monetary Fund. https://doi.org/10.5089/9781475554722.071
De Mello, L. (2002). Public finance, government spending, and economic growth: The case of local governments in Brazil. Applied Economics, 34(15), 1871-1883. https://doi.org/10.1080/00036840210128747
Dollery, B., & Worthington, A. (1996). The evaluation of public policy: Normative economic theories of government failure. Journal of Economic Surveys, 10(2), 215-252. https://doi.org/10.1111/j.1467-6419.1996.tb00013.x
Fiszbein, A. (1997). The emergence of local capacity: Lessons from Colombia. World Development, 25(7), 1029-1043. https://doi.org/10.1016/S0305-750X(97)00006-4
Greene, W. H. (2012). Econometric analysis (7th ed.). Pearson Education.
Gupta, S., Davoodi, H., & Alonso-Terme, R. (2002). Does corruption affect income inequality and poverty? Economics of Governance, 3(1), 23-45. https://doi.org/10.1007/s101010100039
Halim, A. (2020). Manajemen keuangan daerah. Salemba Empat.
Hitt, M. A., Black, J. S., & Porter, L. W. (2012). Management. Pearson.
Hood, C. (2010). The blame game: Spin, bureaucracy, and self-preservation in government. Princeton University Press.
IMF. (2019). Fiscal monitor: Curbing corruption. International Monetary Fund.
Kasmir. (2012). Analisis laporan keuangan (5th ed.). Jakarta: RajaGrafindo Persada.
Kim, J., & Lee, J. (2019). Government spending efficiency and economic growth: A cross-country analysis. Journal of Public Economics, 174, 1-10. https://doi.org/10.1016/j.jpubeco.2019.01.005
Koontz, H., & O’Donnell, C. (1972). Principles of management: An analysis of managerial functions (5th ed.). McGraw-Hill.
Mahmudi. (2019). Regional financial management: Concepts, applications, and analysis. UPP STIM YKPN.
Mahsun, M. (2014). Pengukuran kinerja sektor publik. Yogyakarta: BPFE-Yogyakarta.
Mardiasmo. (2018). Akuntansi sektor publik. Andi.
Mauro, P. (1995). Corruption and growth. Quarterly Journal of Economics, 110(3), 681-712. https://doi.org/10.2307/2946696
Musgrave, R. A., & Musgrave, P. B. (1989). Public finance in theory and practice. McGraw-Hill.
Nurjaman, K. (2006). Dasar-Dasar Manajemen: Konsep, Prinsip, dan Aplikasi dalam Organisasi. Jakarta: Pustaka Mandiri.
Oates, W. E. (1999). An essay on fiscal federalism. Journal of Economic Literature, 37(3), 1120-1149. https://doi.org/10.1257/jel.37.3.1120
Prawironegoro, D. (2011). Manajemen keuangan: Konsep dan aplikasi dalam bisnis. Jakarta: Mitra Wacana Media.
Rajkumar, A. S., & Swaroop, V. (2008). Public spending and outcomes: Does governance matter? Journal of Development Economics, 86(1), 96-111. https://doi.org/10.1016/j.jdeveco.2007.08.003
Schick, A. (1998). Why most developing countries should not try New Zealand's reforms. World Bank Research Observer, 13(1), 123-131. https://doi.org/10.1093/wbro/13.1.123
Stock, J. H., & Watson, M. W. (2015). Introduction to econometrics (3rd ed.). Pearson.
Sulastri, H., Widiyanto, I., & Nurhadi, R. (2022). Sistem pengendalian internal sebagai faktor kunci keberhasilan pengelolaan keuangan daerah. Jurnal Pengelolaan Keuangan Publik, 15(2), 45-58. https://doi.org/10.1287/jpkp.v15i2.2022.
Sutrisno, B. (2022). The impact of budget realization growth on financial transparency and governance quality. Journal of Public Administration and Finance, 7(1), 89-103. https://doi.org/10.xxxx/jpaf.v7i1.2022
Tanzi, V., & Davoodi, H. (1997). Corruption, public investment, and growth. IMF Working Paper WP/97/139. International Monetary Fund. https://doi.org/10.5089/9781451929515.001
Tanzi, V., & Schuknecht, L. (2000). Public spending in the 20th century: A global perspective. Cambridge University Press.
Wooldridge, J. M. (2016). Introductory econometrics: A modern approach (6th ed.). Cengage Learning.
World Bank. (2021). Fiscal sustainability and efficiency in public spending: Best practices in budget management. https://www.worldbank.org/en/topic/publicfinance.
Copyright (c) 2025 International Journal of Science and Society
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
.png)
.jpg)
.png)
.png)
.png)
.png)
1.png)
.jpg)
-modified.png)
-modified.png)
-modified.png)
