Efficient Use of Village Funds and Transfers to Regions in Increasing Community Welfare

Abstract

Village economic and social development is one of the government's focuses to improve national development, therefore the central government is given authority to the village government in managing the implementation of village development to create welfare for rural communities through the allocation of funds provided by the Central Government and Regional Governments into the APBDes. . This study aims to analyze the efficiency of the management of regional incentive funds, special non-physical allocation funds and village funds, especially the allocation of village funds in 33 provinces in Indonesia for the 2019-2021 fiscal year towards village welfare as measured by the IDM, and provide solutions for improve the efficiency of village funds. The analytical method used in this research is Data Envelopment Analysis (DEA) with three input variables and four outputs. After doing an analysis using the MaxDEA 8 analysis tool which shows the results there are only 8 provinces that are efficient in the use of input variables and village fund input variables have the lowest efficiency compared to regional incentive funds and special non-physical allocation funds.