LOCAL GOVERNMENT FINANCIAL PERFORMANCE AND ITS IMPACT ON DEVELOPMENT IN WEST NUSA TENGGARA
Abstract
The purpose of this research is to evaluate West Nusa Tenggara Province's financial performance from 2017 to 2022, wherein measured by independence, effectiveness, efficiency ratio, and influence on development as proxy by the human development index. The research took a quantitative approach employing secondary data originating from the Ministry of Finance (Regional Budget data of 10 Regional Governments in NTB) and BPS (HDI data). The panel regression is used for statistical testing. The study's findings show that the ratio of regional independence is still relatively low, while the ratio of efficiency and effectiveness tends to be high. The results of panel data regression showed that the regional independence ratio did not affect the human development index. In contrast, the effectiveness ratio and efficiency ratio were negative to the human development index. The increase in HDI is greatly influenced by household consumption. Improvement Human development must start with improving the economy of more prosperous households.
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DOI: https://doi.org/10.24815/ekapi.v12i1.44440
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