ANALYSIS OF FISCAL INDEPENDENCE AND REGIONAL EXPENDITURE EFFICIENCY IN SERDANG BEDAGAI REGENCY

Abstrak

This study aims to analyze fiscal independence and regional expenditure efficiency in Serdang Bedagai Regency. The primary focus of the research is to evaluate the extent to which local own-source revenue contributes to financing developmental needs independently and to assess the appropriateness of regional expenditure allocation in enhancing public welfare. The research method employed is descriptive quantitative, conducting financial ratio analysis on statement of budget realization data. Data analysis techniques involve calculating fiscal independence and expenditure efficiency ratios to provide an objective overview of the local government's financial performance. The results indicate that the fiscal independence of Serdang Bedagai Regency remains in the low category due to a high dependency on transfer funds from the central government. Although local own-source revenue provides a positive contribution, its volume is not yet significant enough to independently finance all regional domestic affairs. Regarding expenditures, inefficiencies were identified as the budget portion remains dominated by routine operational expenditures rather than capital expenditures that directly impact infrastructure development. The conclusion of this study emphasizes that a high pattern of fiscal dependency can hinder regional creativity and flexibility in managing economic potential. Local governments are advised to optimize revenue through tax digitalization and to reallocate budgets toward productive sectors. This research is expected to serve as a reference for policymakers in formulating sustainable fiscal strengthening strategies to achieve genuine regional independence.