The Efficiency of Public Sector Programs and Budget Allocation: Evidence from Indonesian Local Government

The increasingly complex problems and limited financial resources frequently hamper the public sector organization. The government needs to manage the budget allocation wisely to meet budgeting efficiency. This study aims to measure the efficiency of budget use from the Department of Public Works and Spatial Planning of Malang City Based on the strategic planning from 2019-2023. This department has three work achievement targets: increasing the quality and equitable distribution of infrastructure development, improving the suitability of spatial planning utilization, and building the performance of regional apparatus services. It applies the input-oriented Data Envelopment Analysis (DEA) method to illustrate budget efficiency comprehensively. The results show that the inefficiency of budget use only occurred in the target, increasing the suitability of spatial planning utilization in 2021, 2022, and 2023. Overall, the findings show that budget planning exceeded the required budget. This study also recommends an appropriate budget design for inefficient years.