REGIONAL SPENDING EFFECTIVENESS AND FISCAL INDEPENDENCE: A STUDY OF EAST JAVA PROVINCE
DOI:
10.54443/ijset.v4i11.1243Published:
2025-10-28Downloads
Abstract
This study aims to evaluate the effectiveness of regional budget (APBD) expenditure in East Java Province and to analyze its fiscal independence. Data were obtained from the Budget Realization Report (LRA), the Central Bureau of Statistics (BPS), and the Directorate General of Fiscal Balance (DJPK). The study employs a descriptive quantitative method using the effectiveness ratio as the main analytical tool. The findings indicate that East Java's budget expenditure in 2022–2023 was categorized as very effective, with realization levels consistently above 93%. However, fiscal independence remains weak as local revenue (PAD) contributes only about 6–7%, while dependency on central government transfers reaches approximately 64%. This reveals that high expenditure effectiveness does not automatically imply strong fiscal autonomy. A comparison with Central Java and Bali shows similar patterns: high expenditure effectiveness accompanied by limited fiscal independence. These findings highlight that the main challenge of fiscal decentralization in Indonesia lies not in spending absorption but in strengthening local revenue capacity and improving the quality of expenditure, particularly in capital spending.
Keywords:
Budget effectiveness Regional expenditure APBD Fiscal independenceReferences
Abilawa, D. B. (n.d.). STRATEGI INVESTASI DALAM PEMBANGUNAN DAERAH KABUPATEN BANYUWANGI.
Antasena, D., Crisstin, Y., & Silawati, D. (2023). Efisiensi Dan Efektivitas Pengelolaan Keuangan Daerah. 3(1).
Christia, A. M., & Ispriyarso, B. (2019). DESENTRALISASI FISKAL DAN OTONOMI DAERAH Di INDONESIA. LAW REFORM, 15(1), 149. https://doi.org/10.14710/lr.v15i1.23360
Harefa, N. B., Zebua, S., & Bawamenewi, A. (2022). ANALISIS EFEKTIFITAS PENGELOLAAN ANGGARAN PENDAPATAN DAN BELANJA DESA (APBDes). Warta Dharmawangsa, 16(4), 1002–1009. https://doi.org/10.46576/wdw.v16i4.2450
Hendra, H., & Halbadika Fahlevi, A. (2024). Implementation of Good Corporate Governance (GCG) Principles in PDAM Tirta Ogan, Ogan Ilir District. Iapa Proceedings Conference, 187. https://doi.org/10.30589/proceedings.2024.1052
Kriekhoff, S., & Riupassa, E. (2024). Analisis Belanja Daerah, Studi Kasus: Pemerintah Kabupaten Seram Bagian Barat. 3(1).
Lusia Lestina Halawa, Mira Sukma, Evlin Limbong, & Wahjoe Pangestoeti. (2025). Pengaruh Kebijakan Desentralisasi Fiskal Terhadap Pertumbuhan Ekonomi Daerah di Indonesia dalam Hubungan Pemerintah Pusat dan Daerah Terkait Keuangan Negara. Studi Administrasi Publik dan ilmu Komunikasi, 2(1), 43–53. https://doi.org/10.62383/studi.v2i1.102
Oates, W. E. (2005). Toward A Second-Generation Theory of Fiscal Federalism. International Tax and Public Finance, 12(4), 349–373. https://doi.org/10.1007/s10797-005-1619-9
Rahmawati, R. S. (n.d.). Analisis Faktor – Faktor Yang Mempengaruhi Penyerapan Anggaran Belanja Pada Pemerintah Kota Cimahi.
Riyanto, S., Subagyo, A., & Rochaeni, A. (2024). KINERJA PEMERINTAH DAERAH DALAM MEWUJUDKAN GOOD GOVERNANCE DI KABUPATEN BANDUNG BARAT. 1.
Suyanto, S. (2015). FLYPAPER EFFECT THEORY DALAM IMPLEMENTASI KEBIJAKAN DESENTRALISASI FISKAL. Jurnal Ekonomi Pembangunan: Kajian Masalah Ekonomi dan Pembangunan, 11(1), 69. https://doi.org/10.23917/jep.v11i1.335
License
Copyright (c) 2025 Putranda Zahid Fajduani
This work is licensed under a Creative Commons Attribution 4.0 International License.
How to Cite
