Financial Performance Analysis of East Lombok District Government in Fiscal Year 2020-2022

Abstract

East Lombok Regency is one of the regencies affected by the establishment of various policies from the central government, one of which is the restriction on the use of transfer funds which were previously the main source of funds for various local governments. This requires the East Lombok Regency Government to make optimal efforts to achieve independence to finance government and development activities. This study aims to analyze the financial performance of the East Lombok Regency Government as seen from the degree of independence, dependence, fiscal decentralization, and effectiveness of Regional Original Income. The data used is the realization of the East Lombok Regency Regional Revenue and Expenditure Budget for the 2020-2022 fiscal year. The study was conducted using a quantitative approach through calculations of several financial ratios, namely independence, dependence, fiscal decentralization, and effectiveness. The results show that the independence of the East Lombok Regency Government is still in the extremely low category which is supported by extremely high dependence on the central government and provincial government, as well as fiscal decentralization which is still in the less-than-ideal criteria. This is also indicated by the Regional Original Income as the main factor in supporting its independence, which has not been optimally realized.