Comparative Analysis of Local Government Financial Performance Before and During Budget Refocusing (Study in Districts/cities in East Java Province)

Abstract

This study aims to compare the local government financial performance before and during budget refocusing because affected by pandemic Covid-19 uses a comparative descriptive approach and aims to compare the financial independence ratio, the degree of decentralization ratio, the Local Own Revenue (PAD) effectiveness ratio, the efficiency ratio, the operating expenditure ratio, and the capital expenditure ratio. This study used panel data 38 local government using a purposive sampling technique. The method of analysis used in this research is descriptive quantitative method. The data used in this study uses secondary data from the Local Government Financial Reports (LKPD) of District/Cities in East Java Province for 2019-2020. Data analysis used the Paired Sample T-Test and Wilcoxon Ranked Test methods with SPSS software. The research show that no difference in local government financial performance before and during budget refocusing. This is influenced by the government's ability to generate Local Own revenue (PAD) and the ability of local governments to optimize their capabilities in managing regional finances. This research is expected to provide an overview and enrich research on financial performance, especially local government financial performance.