Level of Supervision and Accountability

Oct 13, 2025 by leolavanderia.com.br 77 views

Analysis of Shopping Performance in the Budget Realization Report (LRA) at the Medan City Financial and Asset Management Agency (BPKAD)

Introduction

Regional autonomy in Indonesia has been implemented since the application of Law Number 22 of 1999 concerning Regional Government, which has undergone several changes to date. The concept of regional autonomy gives rights and authority to local governments to manage their own government affairs in accordance with the interests of the community. One important aspect in the implementation of regional autonomy is the authority in financial management, known as fiscal decentralization. However, despite the delegations of authority to local governments, regional financial management is often not running optimally. This article aims to analyze the shopping performance in the Budget Realization Report (LRA) at the Medan City Financial and Asset Management Agency (BPKAD) and identify the factors affecting shopping performance and its implications for the community.

Regional Autonomy and Fiscal Decentralization

Regional autonomy in Indonesia began with the application of Law Number 22 of 1999 concerning Regional Government, which later underwent a number of changes to date. At present, regional autonomy is regulated by Law Number 23 of 2014. The concept of regional autonomy gives rights and authority to local governments to manage their own government affairs in accordance with the interests of the community, as revealed by Christia and Ispriyso (2019). The main purpose of this policy is to increase the capacity of local governments in providing better services to the community (Tantri and Irmawati, 2018).

Fiscal decentralization is one of the key aspects of regional autonomy, allowing regions to manage their own finances in the hope of improving local government performance in encouraging economic growth and community welfare (Suwandi, 2015). According to Hastuti (2018), fiscal decentralization is a crucial step in empowering local governments to manage their finances effectively.

Challenges in Regional Financial Management

Despite the delegations of authority to local governments, regional financial management is often not running optimally. Many local governments still face challenges in managing their budgets well. Ironically, although financial management should be carried out with responsibility, in reality there are often fraud. This indicates that various existing regulations often only become text without appropriate implementation in the field. As revealed by Karianga (2017), there are still many deviations in the implementation of regional financial management.

Shopping Performance in the Budget Realization Report

Budget Realization Report (LRA) is one of the important instruments in evaluating the performance of local government spending. This report provides an overview of how effective the budget management is carried out by the Medan City Financial and Asset Management Agency (BPKAD). Through LRA analysis, we can find out the extent to which local governments are able to take advantage of the budget to meet the needs of the community and achieve regional development goals.

Factors Affecting Shopping Performance

Shopping performance in LRA is influenced by various factors, including:

Careful budget planning: Good planning is the main foundation in budget management. Local governments must ensure that every shopping item is well planned in order to have a maximum impact on the community.
Level of Supervision and Accountability: Strict supervision of the use of the budget is also very influential. The existence of a transparent and accountable surveillance system can minimize the risk of irregularities.
Community participation: Involving the community in the process of planning and evaluating the budget can increase the relevance and efficiency of spending. The community can provide input related to the needs that should be prioritized.
Competency training and development: Need to be done so that employees are able to carry out their duties well.

Implications of Shopping Performance for the Community

Good shopping performance in LRA will have a positive impact on the community. With an efficient budget management, local governments can provide the services needed more quickly, such as infrastructure, education, and health. In addition, transparent and accountable spending performance can also increase public confidence in the government.

Conversely, poor shopping performance can cause waste of resources and community dissatisfaction. The community is entitled to obtain clear information about the use of the budget and the results achieved. Therefore, transparency and accountability in regional financial management must always be prioritized.

Conclusion

Regional financial management, especially in the context of the Budget Realization Report (LRA), plays an important role in regional autonomy. Although there is great potential to improve the performance of local governments, challenges and obstacles in budget management must be handled seriously. Through good planning, strict supervision, community participation, and increasing HR capacity, it is expected that regional spending performance can be improved, so that in the end it can achieve more optimal community welfare.

Recommendations

Based on the analysis of shopping performance in the Budget Realization Report (LRA) at the Medan City Financial and Asset Management Agency (BPKAD), the following recommendations are made:

Improve budget planning: Local governments must ensure that every shopping item is well planned in order to have a maximum impact on the community.
Increase transparency and accountability: Strict supervision of the use of the budget is also very influential. The existence of a transparent and accountable surveillance system can minimize the risk of irregularities.
Involve the community: Involving the community in the process of planning and evaluating the budget can increase the relevance and efficiency of spending.
Provide competency training and development: Need to be done so that employees are able to carry out their duties well.

By implementing these recommendations, it is expected that regional spending performance can be improved, so that in the end it can achieve more optimal community welfare.
Frequently Asked Questions (FAQs) about Shopping Performance in the Budget Realization Report (LRA)

Q: What is the Budget Realization Report (LRA)?

A: The Budget Realization Report (LRA) is an important instrument in evaluating the performance of local government spending. It provides an overview of how effective the budget management is carried out by the Medan City Financial and Asset Management Agency (BPKAD).

Q: What are the factors that affect shopping performance in LRA?

A: Shopping performance in LRA is influenced by various factors, including:

Careful budget planning: Good planning is the main foundation in budget management. Local governments must ensure that every shopping item is well planned in order to have a maximum impact on the community.
Level of Supervision and Accountability: Strict supervision of the use of the budget is also very influential. The existence of a transparent and accountable surveillance system can minimize the risk of irregularities.
Community participation: Involving the community in the process of planning and evaluating the budget can increase the relevance and efficiency of spending. The community can provide input related to the needs that should be prioritized.
Competency training and development: Need to be done so that employees are able to carry out their duties well.

Q: What are the implications of shopping performance for the community?

A: Good shopping performance in LRA will have a positive impact on the community. With an efficient budget management, local governments can provide the services needed more quickly, such as infrastructure, education, and health. In addition, transparent and accountable spending performance can also increase public confidence in the government.

Q: What are the consequences of poor shopping performance?

A: Poor shopping performance can cause waste of resources and community dissatisfaction. The community is entitled to obtain clear information about the use of the budget and the results achieved. Therefore, transparency and accountability in regional financial management must always be prioritized.

Q: How can local governments improve shopping performance in LRA?

A: Local governments can improve shopping performance in LRA by:

Improving budget planning: Local governments must ensure that every shopping item is well planned in order to have a maximum impact on the community.
Increasing transparency and accountability: Strict supervision of the use of the budget is also very influential. The existence of a transparent and accountable surveillance system can minimize the risk of irregularities.
Involving the community: Involving the community in the process of planning and evaluating the budget can increase the relevance and efficiency of spending.
Providing competency training and development: Need to be done so that employees are able to carry out their duties well.

Q: What is the role of the community in shopping performance in LRA?

A: The community plays an important role in shopping performance in LRA. By involving the community in the process of planning and evaluating the budget, local governments can increase the relevance and efficiency of spending. The community can provide input related to the needs that should be prioritized.

Q: How can the community participate in shopping performance in LRA?

A: The community can participate in shopping performance in LRA by:

Providing input: The community can provide input related to the needs that should be prioritized.
Participating in budget planning: The community can participate in the process of planning and evaluating the budget.
Monitoring spending: The community can monitor the use of the budget and the results achieved.

Q: What are the benefits of shopping performance in LRA?

A: The benefits of shopping performance in LRA include:

Improved efficiency: Shopping performance in LRA can improve the efficiency of spending.
Increased transparency: Shopping performance in LRA can increase transparency in regional financial management.
Improved public confidence: Shopping performance in LRA can improve public confidence in the government.
Better services: Shopping performance in LRA can provide better services to the community.