<![CDATA[This study examines the efficiency of local government functional spending in East Java in realizing hifdz al-‘aql and investigates whether regional area and population size explain variations in spending efficiency. A quantitative approach was employed using a Two-Stage Data Envelopment Analysis (DEA) covering 38 regencies and cities from 2019 to 2023. The first stage applied an input-oriented Variable Returns to Scale (VRS) model, with functional spending on education, economy, tourism-culture, and public order-security as inputs and the Education Index, represented by Expected Years of Schooling and Mean Years of Schooling, as the output. The second stage employed panel regression to examine regional area and population size as exogenous determinants. The results reveal an average efficiency score of 0.630, indicating considerable scope for input optimization or reallocation while maintaining existing educational outcomes. Regional area and population size have no statistically significant effects on efficiency variations. From a Sharia perspective, this efficiency gap should not be directly equated with isrāf, but understood as a normative indication for improving the management of al-māl al-‘āmm as an amānah to maximize maṣlaḥah. The study contributes to Islamic economic law by operationalizing hifdz al-‘aql as an evaluative framework that integrates empirical spending efficiency with Sharia-oriented public financial governance. ]]>
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