Analysis of Budget Realization on the Performance of the Regional Government at Enrekang Regency for the Fiscal Year 2021–2023 in South Sulawesi Province
Abstract
Purpose: This study aims to examine the dynamics of budget realization and its relationship with the performance of the Regional Government in Enrekang Regency during the fiscal years 2021–2023. Specifically, it investigates how financial management indicators reflect the efficiency, independence, and development priorities of the regional government.
Research Design and Methodology: The study focuses on regional government agencies in Enrekang Regency and employs an analytical approach using a range of financial ratio indicators. Key ratios analyzed include budget efficiency, financial independence, fiscal decentralization, and expenditure harmony, which together provide a comprehensive assessment of the region’s fiscal performance.
Findings and Discussion: The analysis reveals that the management of Regional Original Revenue (PAD) remains largely ineffective. The budget efficiency ratio fluctuates between 90% and 100%, with an average of 98.88%, indicating relatively inefficient financial management. The financial independence ratio suggests a high reliance on external funding, while the fiscal decentralization ratio is very low, highlighting limited capacity for fiscal autonomy. Moreover, the expenditure harmony ratio shows a strong emphasis on operational expenditures over capital expenditures, which may constrain long-term developmental investments. These findings suggest that despite budget allocations, structural inefficiencies and dependence on external funds hinder the regional government’s overall performance.
Implications: The study underscores the need for improved fiscal management strategies in Enrekang Regency, particularly in enhancing revenue generation, promoting fiscal independence, and balancing operational and capital expenditures to support sustainable long-term development. These insights are valuable for policymakers aiming to strengthen regional financial governance and optimize budgetary outcomes.
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