ANALYSIS OF REGIONAL GOVERNMENT FINANCIAL PERFORMANCE BASED ON REALIZATION OF REGIONAL REVENUE AND EXPENDITURE BUDGET (STUDY OF GERBANGKERTOSUSILA REGENCY/CITY)

Abstract

This study aims to analyze the financial performance of local governments in the Gerbangkertosusila area, East Java Province, by comparing performance between regions based on the Realization of the Regional Revenue and Expenditure Budget (APBD) for the 2019-2024 fiscal year. The Gerbangkertosusila area covers several regencies and cities that have a strategic role in the economy of East Java. Financial performance is analyzed using the Efficiency Ratio, Effectiveness Ratio, Independence Ratio, Harmony Ratio, and Growth Ratio. The research method used is Qualitative with observation and documentation techniques on the APBD data of each region. The results of the study show that in 2024, the City of Surabaya has a very good Efficiency ratio of 85.2%. Conversely, in 2021, Bojonegoro has a very low Efficiency ratio, which is 134.2%. On the other hand, the Effectiveness ratio of Jombang Regency in 2021 was recorded as very high with a value of 139.34%. However, the City of Surabaya in 2022 only achieved an Effectiveness ratio of 67.72%. For the Independence ratio, Surabaya City in 2022 showed very good performance with a ratio of 87.72%, while Bangkalan Regency in the same year only achieved an Independence Ratio of 10.91%. Furthermore, in the Operational Expenditure Harmony Ratio, Bojonegoro Regency in 2021 showed a very good ratio of 39.7%, while Surabaya City in the same year had a poor Operational Expenditure Harmony Ratio of 84.6%. As for the Harmony Ratio in the Capital Expenditure Ratio, Tuban Regency in 2023 was recorded to have a good ratio of 32.2%, while Jombang Regency in 2024 experienced a decline with a very low ratio of 7.1%. Finally, the Growth Ratio of Bojonegoro Regency in 2021 showed a good figure of 41.7%, while Surabaya City in 2020 experienced a decline with a growth ratio of -13.9%.