Analisis Efesiensi dan Efektivitas Keuangan Daerah Kabupaten Nias Tahun 2021-2024

Abstract

Effective and efficient regional financial management is a key factor in improving public welfare and the quality of regional development. Nias Regency faces challenges in achieving efficiency and effectiveness in financial management despite having great economic potential. This study aims to analyze the level of efficiency and effectiveness of regional financial management in Nias Regency for the period 2021–2024. Methods: This research uses a descriptive quantitative approach with secondary data in the form of regional financial reports of Nias Regency obtained from Progress Report on Development Control or Development Control Progress Report. The analysis was conducted using effectiveness and efficiency ratio methods based on the guidelines of Ministry of Home Affairs Regulation No. 77 of 2020. The results showed that from 2021 to 2023, the financial management of Nias Regency showed a positive trend, with revenue effectiveness reaching 101.50% and expenditure efficiency at 94.30% in 2023. However, in 2024, there was a sharp decline, with revenue effectiveness dropping to 33.30% and expenditure efficiency to 62.80%. The financial performance of Nias Regency indicates a strong potential for sound financial management. However, the significant decline in 2024 highlights the need for strategic evaluation and strengthening of the regional financial management system.