FINANCIAL ANALYSIS OF THE REGIONAL GOVERNMENT BUDGET IN THE BLITAR CITY

Abstract

This study aims to measure the regional financial performance of Blitar City in 2017-2021 by using regional financial ratios. The existence of regional autonomy requires each region to manage its finances independently and also public sector organization required to pay attention the value for money. Financial management in 2011-2015, Blitar City had several problems such as, high ratio of dependence and indicate the dominance fund from central government, the poor degree of decentralization, while income growth stays positive. Through the ratio analysis, it is expected that this study can give some references to the Government. This research is descriptive quantitative with the data collection technique used are documentation method and literature study. This research is an analysis of the financial performance of Blitar city in 2017-2021 uses analysis ratio from its financial report. The result was determined as seen from the Financial Performance of the Blitar City Government in 2017-2021: (1) Very low Income Growth Ratio show not optimal policy improvement, (2) Degree of Decentralization in 2018-2020 shows categorized as less and there is improvement as sufficient in 2021, (3) High Regional Financial Dependence Ratio, (4) Consultative or high level Regional Financial Independence Ratio, (5) Very effectiveness PAD Effectiveness Ratio, (6) Very efficient PAD Efficiency Ratio, (7) Effective Budget Effectiveness Ratio, (8) Sufficient Budget Efficiency Ratio. Government expected to increase the target for revenue growth and PAD acquisition as a form of improving decentralization, reducing financial dependence and increasing regional independence.