Analysis of Financial Performance of Cimahi City Local Government in 2015-2019

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Fachmi Nurhayat Rodiana, Ahmad Ghozali, Silviana

Abstract

This study aims to determine the Financial Performance of the Cimahi City Local Government in 2015-2019 seen from the ratio of the degree of fiscal decentralization, local financial independence ratio, Local Own-source Revenue (PAD) effectiveness ratio, revenue growth ratio, expenditure growth ratio, analysis of expenditure suitability, expenditure efficiency ratio, and local expenditure ratio towards Local Gross Domestic Product (GDP). This research is quantitative descriptive. This research was conducted at the Regional Financial and Asset Management Agency of Cimahi City. The results of the analysis show that the financial performance of the Cimahi City Local Government seen from the ratio of the degree of fiscal decentralization is categorized as moderate because the average ratio is still in the interval 22.65% - 25.91%. The ratio of regional financial independence is categorized as low because it is at the interval 30.62% - 40.92%. The effectiveness ratio of Local Own-source Revenue is categorized as very effective because the average effectiveness has exceeded 100%. The Revenue Growth Ratio grew by an average of 6% and the average expenditure growth ratio grew 8% annually. The expenditure suitability analysis is quite balanced between functions and types of expenditure and has met the mandate of statutory provisions, whereas based on the harmonization ratio of operational expenditures and capital expenditures, it is found that most of the funds owned by the Cimahi City Local Government are still prioritized for operational expenditure needs so that the capital expenditure ratio is small. The efficiency ratio of local expenditure is still considered quite efficient because it is still at interval 76.17% - 89.64%. The ratio of Local Expenditure towards Local GDP is in the interval 4.66% - 5.53%.

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