Pengaruh Desentralisasi Fiskal terhadap Efisiensi Belanja Pemerintah Daerah Pada Sektor Kesehatan dan Pendidikan di Indonesia

Abstract

This research aims to measure the local government spending efficiency in the health and education sector in Indonesia and analyze the effect of fiscal decentralization spending efficiency in Indonesia. Data Envelopment Analysis (DEA) measures spending efficiency using government spending as input and Life Expectancy, Average Years of Schooling and Expected Years of Schooling as outputs. Second, Fixed Effects panel regression examines the effects of Balancing Funds and Locally-Generated Revenue (PAD). Good governance and accountability, which is measured by BPK audit opinion on local government financial report (LKPD) included in the form of interactions variable. This study extends previous by examining the moderating role of local government financial governance and accountability. Unlike previous studies that focused on limited geographical areas, this study uses data from 508 regencies/cities across Indonesia from 2017 to 2021, providing broader evidence at the national level. In addition, this study examines the interactions between fiscal decentralization instruments and BPK audit opinions in relation to spending efficiency in the health and education sectors. Therefore, this study provides nationwide, sector-specific evidence on how governance moderates the relationship between fiscal decentralization and spending efficiency, with different patterns across the two sectors. This study indicate that fiscal decentralization positively affects health spending efficiency under both governance conditions, with stronger effects under good governance. Conversely, its effects on education spending efficiency shift from negative under weaker governance to positive under good governance. These findings extend fiscal federalism theory by demonstrating that the efficiency gains from fiscal decentralization depend on institutional governance quality and differ across public service sectors.