Analysis Of The Budget Realization Report (BRR) To Assess The Efficiency And Effectiveness Of The Financial Performance Of The North Sumatra Provincial Government

Abstract

This study aims to examine the effectiveness and efficiency of the financial performance of the North Sumatra Provincial Government based on the Budget Realization Report (Laporan Realisasi Anggaran/LRA). Furthermore, the study provides an overview of the role of the Budget Realization Report in evaluating government financial performance. This research employed a descriptive qualitative method using a documentary analysis approach. It is classified as desk research because it relies on secondary data obtained from publicly available documents. The data sources included the Budget Realization Report (LRA), regional government financial statements, and supporting data collected from the official websites of the North Sumatra Provincial Government, the Audit Board of the Republic of Indonesia (BPK RI), and Statistics Indonesia (BPS). The analysis focused on regional financial reports covering the period from 2022 to 2024. Data were collected using purposive sampling, in which the selected documents met the criteria of the research variables. All data were obtained from the official public information portals of the North Sumatra Provincial Government. The findings indicate that the financial performance of the North Sumatra Provincial Government declined during the 2022–2024 period. This decline was reflected in a decrease in effectiveness from highly effective to moderately effective, while efficiency deteriorated from less efficient to inefficient. The Budget

Realization Report (LRA) proved to be an effective instrument for evaluating financial performance and supporting improvements in regional financial management.