Pengaruh Perbaikan Integritas Terhadap Efisiensi Belanja Pemerintah Daerah

Abstract

This study aims to examine the effect of local government integrity on local government spending efficiency. This study uses the budget management index variable, which is the most relevant variable in the Integrity Assessment Survey constituent variables with regional expenditures. The sample in this study was 74 districts or cities in Indonesia using 2019 data. A two-step method was used in this study. The first method is Data Envelopment Analysis (DEA) which is used to determine the relative efficiency of the Regional Government with inputs in the form of total expenditure realization and output in the form of Economic Growth, Human Development Index, and the number of people who are not included in the category of poor people. After the efficiency value is determined, the next step is to test the effect of integrity on efficiency, using the multiple linear regression method. This study found that integrity in budget management has a positive and significant effect on the efficiency of local government spending. In other words, the less integrity a local government has, the higher the production costs and the less efficient the production process.