Jurnal Ilmiah Teunuleh: The International Journal of Social Sciences
Vol. 4 No. 3 (2023): Jurnal Ilmiah Teunuleh

Regional Financial Efficiency Ratio and Suitability in Improving Regional Development of West Aceh Regency

Yasrizal, Yasrizal (Unknown)
Wahyuningsih, Yayuk Eko (Unknown)
Mahrizal, Mahrizal (Unknown)
Harmaini, Harmaini (Unknown)
Syafrizal, Syafrizal (Unknown)



Article Info

Publish Date
26 Sep 2024

Abstract

In the analysis of the financial condition of Aceh Barat Regency, it was revealed that significant dependence on Central Transfers, especially through the General Allocation Fund (DAU) and the Special Allocation Fund (DAK), creates challenges in achieving stable financial independence. Although Locally Generated Revenue (PAD), such as regional taxes and levies, contributes to the revenue, the fluctuations indicate the complexity and risk in achieving financial balance. Diversifying revenue sources has become a primary focus to address dependence on natural resources and the fisheries sector, as well as external fluctuations. Optimizing regional taxes, levies, and developing the tourism sector are key strategies to strengthen Locally Generated Revenue. Moreover, the analysis of the Regional Financial Efficiency Ratio (REKD) indicates characteristics of inefficiency or inefficiency during the 2011-2022 period, highlighting the need for improvements in budget management and revenue collection. The Compatibility Ratio, which shows an increase in Operating Expenditure and a tendency to decrease Capital Expenditure, underscores the need to achieve a better balance between long-term investment and operational activities. Therefore, Aceh Barat Regency needs to take proactive steps in enhancing financial efficiency, diversifying income, and allocating funds wisely to achieve sustainable economic growth and financial stability.

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Journal Info

Abbrev

jiteunuleh

Publisher

Subject

Humanities Education Languange, Linguistic, Communication & Media Social Sciences Other

Description

Jurnal Ilmiah Teunuleh, is the International Journal of Social Sciences, and an International Journal Open Access and a leading peer-reviewed journal. Jurnal Ilmiah Tenunuleh specializes in the Social Sciences, consolidates fundamental and applied research activities with very wide-ranging coverage. ...