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This is a Quantitative Study study.

September 23, 2025Open Access

The Effect of Regional Financial Ratios on Budget Implementation Performance: An Empirical Study of Districts/Cities in Indonesia for the Period 2018-2023

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Financial efficiency significantly impacts budget implementation performance, unlike fiscal independence.
The study found a coefficient of 0.193478 for financial efficiency, with a p-value < 0.001.
Using a Fixed Effects Model, the analysis included 250 districts/cities over five years of data.
The findings challenge existing beliefs about fiscal autonomy and emphasize efficient financial management.

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Empirical analysis reveals fiscal independence doesn't boost budget implementation performance, suggesting focus on financial efficiency.

Lima et al. (2025) studied this question.

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