Proceedings of the 3rd Economics and Business International Conference, EBIC 2022, 22 September 2022, Medan, North Sumatera, Indonesia

Research Article

Analysis of Regional Government Expenditure Efficiency to Improve Human Development Index 2015-2020

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  • @INPROCEEDINGS{10.4108/eai.22-9-2022.2337478,
        author={Paidi  Hidayat and Sirojuzilam  Sirojuzilam and Suardi  Suardi and Agus  Purwoko},
        title={Analysis of Regional Government Expenditure Efficiency to Improve Human Development Index 2015-2020},
        proceedings={Proceedings of the 3rd Economics and Business International Conference, EBIC 2022, 22 September 2022, Medan, North Sumatera, Indonesia},
        publisher={EAI},
        proceedings_a={EBIC},
        year={2024},
        month={4},
        keywords={efficiency economics health education human development index},
        doi={10.4108/eai.22-9-2022.2337478}
    }
    
  • Paidi Hidayat
    Sirojuzilam Sirojuzilam
    Suardi Suardi
    Agus Purwoko
    Year: 2024
    Analysis of Regional Government Expenditure Efficiency to Improve Human Development Index 2015-2020
    EBIC
    EAI
    DOI: 10.4108/eai.22-9-2022.2337478
Paidi Hidayat1,*, Sirojuzilam Sirojuzilam1, Suardi Suardi1, Agus Purwoko1
  • 1: Universitas Sumatera Utara
*Contact email: paidi@usu.ac.id

Abstract

Decentralization in Indonesia allows local governments to prepare regional budgets that are prepared to carry out regional government functions. One of the goals to be optimized is the effort to increase the human development index (HDI) in each province. The efforts to increase HDI are broadly reflected in three government functions, namely the education function, the health function and the economic function. This study evaluates the relevance between the realization of the use of regional expenditures and the performance of government functions in the three HDI-related functions. The research was conducted by evaluating changes in budget use and indicators of achievement of government functions from 34 provinces throughout Indonesia from 2015 to 2020. The analytical tool used was the Klassen typology. The results of the evaluation on the economic function show that there are only two provinces that are increasingly efficient in using the budget to achieve performance. A total of four provinces in the health function can improve their efficiency in the study period. Only one province is getting better from the use of the budget in the implementation of the education function