<![CDATA[This study aims to measure the relative efficiency of district and city government spending in Indonesia in the education, health, and social protection functions, and to analyze the influence of real GRDP per capita and regional fiscal capacity on spending efficiency. The research uses a two-stage analysis approach: the first stage applies Data Envelopment Analysis (DEA) with an output-oriented model and Variable Returns to Scale (VRS) assumption to measure efficiency scores, followed by Tobit panel data regression to analyze its determinants. The study employs secondary data from 508 districts/cities in Indonesia covering 2018-2022 with a total of 2,540 observations. The results show that the average efficiency score increased from 0.8962 in 2018 to 0.9103 in 2022, although disparities between regions persist. Real GRDP per capita has a positive and significant effect on spending efficiency, while regional fiscal capacity has a simultaneous effect; partially, however, only the very low and high categories are significant. These findings imply that higher fiscal capacity does not automatically improve efficiency; spending quality and institutional governance are essential.]]>
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