FINANCIAL PERFORMANCE ANALYSIS OF SOUTH SULAWESI PROVINCIAL GOVERNMENT, 2023–2025
DOI:
https://doi.org/10.61141/pabean.v8i2.855Keywords:
Financial Performance, regional government, APBD, Financial Ratio, South SulawesiAbstract
Main Purpose - This study aims to analyze the financial performance of the South Sulawesi Provincial Government during the period 2023–2025. Financial performance is an important indicator in assessing the ability of local governments to manage public finances effectively, efficiently, and independently in the context of fiscal decentralization. Method - This study employs a descriptive quantitative approach using secondary data obtained from the Regional Revenue and Expenditure Budget (APBD) of South Sulawesi Province for the period 2023–2025. The analysis is conducted using regional financial performance ratios, including the effectiveness ratio of local own-source revenue, financial efficiency ratio, financial independence ratio, financial dependency ratio, and expenditure harmony ratio. Main Findings - The results show that the financial performance of the South Sulawesi Provincial Government varies across the observation period, indicating fluctuations in revenue effectiveness, efficiency of budget utilization, and the level of fiscal independence. The findings also reveal that regional finances remain relatively dependent on intergovernmental transfers, while operational expenditures dominate the expenditure structure compared to capital expenditures. Theory and Practical Implications - This study provides practical implications for local governments in improving fiscal management, strengthening local revenue capacity, and optimizing expenditure allocation to support sustainable regional development. Novelty - This study provides a pioneering empirical evaluation of provincial fiscal resilience in the transition period following the implementation of Law Number 1 of 2022 (UU HKPD), offering unique insights into the financial dynamics of Eastern Indonesia’s key economic hub during the 2023–2025 fiscal years.References
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