Analisis Rasio Efektivitas dan Efesiensi Keuangan Daerah Pemda Kota Pematangsiantar Tahun 2018 - 2024

Abstract

This research analyzes the financial performance of the Pematangsiantar City Regional Government during the 2018-2024 period. The background of the problem indicates that Pematangsiantar City experienced budgetary inefficiency during this period, where regional expenditures tended to be larger than revenues, dominated by operational expenditures. The objectives of this study are to analyze and determine the regional financial performance of Pematangsiantar City from 2018 to 2024, identify factors influencing the effectiveness and efficiency of regional financial management, and understand the impacts arising from such ineffectiveness and inefficiency. The research employed a quantitative descriptive method, utilizing financial ratios such as the effectiveness ratio and efficiency ratio. The results show that Pematangsiantar City was highly effective in optimizing regional revenue during the 2018-2024 period. However, in terms of efficiency, it was found that regional financial management was not efficient. This is because the local government has not been able to manage financial performance well, resulting in expenditures exceeding revenues. This condition indicates the need for improvements in regional expenditure management to achieve better fiscal balance in the future