Analysis of Financial Performance of the Regional Government of Majalengka District, Year 2015 – 2019

Abstract

This study aims to determine the Financial Performance of the Regional Government of Majalengka Regency in 2015-2019 in terms of the ratio of the degree of fiscal decentralization, the ratio of regional financial independence, the ratio of effectiveness of local revenue (PAD), the ratio of revenue growth, the ratio of expenditure growth, analysis of expenditure harmony, efficiency ratio. expenditure, and the ratio of regional expenditure to GRDP. This study is part of a quantitative descriptive study. This study was conducted at the Regional Financial and Asset Management Agency of Majalengka Regency. Based on the results of the analysis of audited financial report data, it shows that the financial performance of the Regional Government of Majalengka Regency in terms of the ratio of the degree of fiscal decentralization is categorized as lacking because the average ratio is still in the interval 10.01% - 20.00%. The ratio of regional financial independence is very low because it is in the 0% - 25% interval. The effectiveness ratio of PAD is categorized as effective because the effectiveness value of PAD is at intervals of more than 90% - 100%. The Revenue Growth Ratio has positive growth, as is the expenditure growth ratio. The Analysis of Consequency in Expenditures is quite balanced between functions and types of expenditure and has met the mandate of the statutory provisions, whereas based on the harmonization ratio of operating expenditure and capital expenditure it is found that most of the funds held are prioritized for operating expenditure needs so that the capital expenditure ratio is smaller. The regional expenditure efficiency ratio is quite efficient because it is in the interval 90.21 - 93.78. Meanwhile, the ratio of regional expenditure to GDP is in the interval 9.75 - 11.35.