Analisis Efisiensi Pengeluaran Kas Daerah dalam Menunjang Program Prioritas Kota Medan 2021-2023

Abstract

This study aims to analyze the efficiency of regional cash expenditures by the Medan City Government in supporting the implementation of priority programs during the 2021–2023 period. Spending efficiency is assessed through the efficiency ratio between expenditure and revenue realization, as well as the proportion of direct and indirect spending. This research employs a descriptive quantitative approach using secondary data from the Regional Budget Realization Reports (LRA). The findings indicate that the average efficiency ratio for Medan City is 102.94%, which signifies inefficiency as expenditures exceed revenues. The proportion of direct spending averages only 21.10%, while indirect spending dominates at 78.13%. These results suggest that the spending structure remains focused on routine expenditures rather than development-oriented ones. Therefore, budget policy reform is needed by increasing the share of productive direct spending and strengthening fiscal control to ensure more efficient and impactful use of regional funds for priority programs.