Mengukur Kinerja Pemerintah Kota Banda Aceh Berdasarkan Value of Money
Year: 2026
Type: article
Abstract: This study aims to measure the financial performance of the Banda Aceh City Government based on the Value for Money approach, which evaluates performance through economy, efficiency, and effectiveness ratios. The research uses a descriptive quantitative method with secondary data obtained from the Regional Financial and Asset Agency (BKAD) in the form of the Local Government Budget Realization Report (LRA) for the years 2018–2024. Data include budget and realization of regional revenues and expenditures, which are analyzed using the economy ratio, efficiency ratio, and effectiveness ratio.The results show that the economy ratio of Banda Aceh City is consistently below 100 percent in all observed years, indicating that the government has implemented economic spending and avoided budget overspending. However, the efficiency ratio shows that Banda Aceh City has not been able to manage its finances efficiently, as most years fall into the inefficient or less efficient categories, with 2023 being the least efficient year when expenditure exceeded revenue. Meanwhile, the effectiveness ratio shows positive performance, where Banda Aceh successfully achieved and even exceeded its revenue targets, with 2023 recorded as a highly effective year. Overall, the Banda Aceh City Government demonstrates economic and effective financial performance, although efficiency remains a significant challenge. Strengthening revenue management and controlling operational spending are necessary to improve financial sustainability in the future. Kata kunci :Value for Money, Economy Ratio, Efficiency Ratio, Effectiveness Ratio, Financial Performance
Source: EKBIS (Ekonomi & Bisnis)
Institution: State University of Medan
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W7218925877