Analysis of Efficiency and Effectiveness of Regional Financial Management in Aceh Singkil Regency in the Era of Regional Autonomy

Oct 13, 2025 by windailys.com 92 views

Analysis of Efficiency and Effectiveness of Regional Financial Management in Aceh Singkil Regency in the Era of Regional Autonomy

Introduction

The implementation of Law Number 22 of 1999 concerning Regional Government has brought significant changes to regional financial management in Aceh Singkil Regency. The shift of authority from the central government to the regions has provided opportunities for Aceh Singkil Regency to manage the Regional Revenue and Expenditure Budget (APBD) with greater autonomy. However, the rapid growth of the APBD is not always balanced with increasing the welfare of the population. This research aims to assess the level of efficiency and effectiveness of regional financial management in the region.

The Era of Regional Autonomy: A New Era for Regional Financial Management

The era of regional autonomy has brought about a significant change in the way regional financial management is conducted in Aceh Singkil Regency. The central government's authority has been transferred to the regions, providing opportunities for Aceh Singkil Regency to manage its own finances. This has led to the growth of the APBD, which has increased from Rp 45,822,986,296 in 2000 to Rp 277,749,484,323 in 2006. However, the dependence of the Aceh Singkil Regency Government's budget on the central government is still very high, reaching 98%. This indicates that the ability of the region to explore sources of local revenue is still limited.

Analysis of Financial Relationship Structure

This study uses secondary data in the form of time series from the fiscal year 2000 to 2006 to analyze the structure of relations between the Central Government and the Regional Government of Aceh Singkil Regency. The focus of the analysis includes receiving transfer funds such as general allocation funds, tax revenue sharing, and profit sharing. In addition, the growth of Regional Original Revenue (PAD) was also analyzed, as well as the relationship between the realization of revenue and routine expenses.

The results of the analysis show that the dependence of the Aceh Singkil Regency Government's budget on the central government is still very high. This indicates that the ability of the region to explore sources of local revenue is still limited. In the future, PAD intensification and extensification efforts are needed to reduce this dependence.

Receipt and Efficiency Growth

Revenue growth in Aceh Singkil Regency shows a significant increase. From 2000, regional revenue increased from Rp 45,822,986,296 to Rp 277,749,484,323 at the end of 2006. However, although the total revenue shows a positive figure, PAD revenue is actually fluctuating. In 2000, PAD was recorded at Rp 1,608,264,122 and increased to Rp 6,199,131,809 at the end of the study period.

The level of efficiency of regional financial management ranges from 24% to 63%. This means that the management is classified as efficient. Meanwhile, the level of effectiveness ranges from 96% to 109%, which shows that regional financial management is very effective. This level of efficiency and effectiveness reflects the ability of local governments in using the budget to achieve regional development goals.

Conclusion and Recommendations

From the analysis conducted, it can be concluded that regional financial management in Aceh Singkil Regency in the era of regional autonomy has experienced significant progress in terms of efficiency and effectiveness. Nevertheless, high dependence on the central government shows the need to strengthen the source of local revenue. Efforts to intensify and extensify PAD need to be done to increase regional financial independence.

In the future, local governments need to focus more on the development of sectors that can increase local revenue and increase transparency and accountability in budget management. This will not only have a positive impact on regional financial management, but also on the welfare of the people of Aceh Singkil Regency as a whole.

Recommendations for Future Research

This study provides a comprehensive analysis of the efficiency and effectiveness of regional financial management in Aceh Singkil Regency. However, there are still many areas that require further research. Some of the recommendations for future research include:

Conducting a more in-depth analysis of the factors that contribute to the high dependence of the Aceh Singkil Regency Government's budget on the central government.
Examining the impact of PAD intensification and extensification efforts on regional financial independence.
Investigating the relationship between regional financial management and regional development goals.
Analyzing the role of transparency and accountability in budget management in achieving regional financial management goals.

Conclusion

In conclusion, this study provides a comprehensive analysis of the efficiency and effectiveness of regional financial management in Aceh Singkil Regency in the era of regional autonomy. The results of the study show that regional financial management has experienced significant progress in terms of efficiency and effectiveness. However, high dependence on the central government shows the need to strengthen the source of local revenue. Efforts to intensify and extensify PAD need to be done to increase regional financial independence.
Q&A: Analysis of Efficiency and Effectiveness of Regional Financial Management in Aceh Singkil Regency in the Era of Regional Autonomy

Q: What is the main objective of this study?

A: The main objective of this study is to assess the level of efficiency and effectiveness of regional financial management in Aceh Singkil Regency in the era of regional autonomy.

Q: What are the key findings of this study?

A: The key findings of this study include:

The dependence of the Aceh Singkil Regency Government's budget on the central government is still very high, reaching 98%.
The level of efficiency of regional financial management ranges from 24% to 63%, indicating that the management is classified as efficient.
The level of effectiveness ranges from 96% to 109%, showing that regional financial management is very effective.
Revenue growth in Aceh Singkil Regency shows a significant increase, from Rp 45,822,986,296 in 2000 to Rp 277,749,484,323 in 2006.

Q: What are the implications of these findings?

A: The implications of these findings are:

The high dependence on the central government shows the need to strengthen the source of local revenue.
Efforts to intensify and extensify PAD need to be done to increase regional financial independence.
Local governments need to focus more on the development of sectors that can increase local revenue and increase transparency and accountability in budget management.

Q: What are the recommendations for future research?

A: The recommendations for future research include:

Conducting a more in-depth analysis of the factors that contribute to the high dependence of the Aceh Singkil Regency Government's budget on the central government.
Examining the impact of PAD intensification and extensification efforts on regional financial independence.
Investigating the relationship between regional financial management and regional development goals.
Analyzing the role of transparency and accountability in budget management in achieving regional financial management goals.

Q: What are the limitations of this study?

A: The limitations of this study include:

The use of secondary data, which may not be comprehensive or accurate.
The focus on a single region, which may not be representative of other regions.
The lack of consideration of other factors that may influence regional financial management.

Q: What are the implications of this study for policy makers?

A: The implications of this study for policy makers are:

The need to strengthen the source of local revenue to reduce dependence on the central government.
The importance of increasing transparency and accountability in budget management.
The need to focus on the development of sectors that can increase local revenue.

Q: What are the implications of this study for local governments?

A: The implications of this study for local governments are:

The need to intensify and extensify PAD efforts to increase regional financial independence.
The importance of increasing transparency and accountability in budget management.
The need to focus on the development of sectors that can increase local revenue.

Q: What are the implications of this study for researchers?

A: The implications of this study for researchers are:

The need to conduct more in-depth analysis of the factors that contribute to the high dependence of the Aceh Singkil Regency Government's budget on the central government.
The importance of examining the impact of PAD intensification and extensification efforts on regional financial independence.
The need to investigate the relationship between regional financial management and regional development goals.