Published date:Feb 18 2025

Journal Title: KnE Social Sciences

Issue title: The 2024 AAPA-EROPA-AGPA-IAPA Joint Conference

Pages:78 - 88

DOI: 10.18502/kss.v10i4.18029

Ai Siti Faridaaisitifarida@uinsgd.ac.idUIN Sunan Gunung Djati Bandung, Indonesia

Jiwa RiwayantiDepartment of Public Administration, Faculty of Social and Political Science, Padjadjaran University, Indonesia

Entang Adhi MuhtazDepartment of Public Administration, Faculty of Social and Political Science, Padjadjaran University, Indonesia

Didin MuhafidinDepartment of Public Administration, Faculty of Social and Political Science, Padjadjaran University, Indonesia

Ahmad BuchoriDepartment of Public Administration, Faculty of Social and Political Science, Padjadjaran University, Indonesia

The success of regional development highly depends on good and efficient financial management. Effective management reflects accountability and transparency in government, which can be measured through the value for money (VfM) principle with economic, efficiency, and effectiveness ratios. This article aims to evaluate the financial management performance of the Bandung City Government in 2022 and 2023 based on the VfM ratio analysis. Based on the processed regional revenue and expenditure budget (APBD) data, it was found that the economic ratio in 2022 only reached 1.23% and increased significantly to 57.4% in 2023. The efficiency ratio of 2.43% in 2022 experienced a slight increase to 2.6% in 2023. Meanwhile, the effectiveness ratio of 55.9% in 2022 increased sharply to 98.8% in 2023. Although there was a significant improvement in the aspect of effectiveness, the analysis results showed that efficiency still remains the main challenge in financial management. This article also provides practical solutions to overcome these problems, such as improving budget evaluation, implementing a performance-based management system, and optimizing revenue collection strategies through information technology. This is expected to encourage better efficiency and effectiveness of budget management in the future so that it is in line with the VfM principle, which demands the use of funds economically, efficiently, and effectively.

Keywords: value for money, regional financial management, Bandung city government

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