Value for Money Analysis of Bandung City Goverment Financial Reports 2022-2023

The success of regional development highly depends on good and efficient financial management. Effective management reflects accountability and transparency in government, which can be measured through the value for money (VfM) principle with economic, efficiency, and effectiveness ratios. This article aims to evaluate the financial management performance of the Bandung City Government in 2022 and 2023 based on the VfM ratio analysis. Based on the processed regional revenue and expenditure budget (APBD) data, it was found that the economic ratio in 2022 only reached 1.23% and increased significantly to 57.4% in 2023. The efficiency ratio of 2.43% in 2022 experienced a slight increase to 2.6% in 2023. Meanwhile, the effectiveness ratio of 55.9% in 2022 increased sharply to 98.8% in 2023. Although there was a significant improvement in the aspect of effectiveness, the analysis results showed that efficiency still remains the main challenge in financial management. This article also provides practical solutions to overcome these problems, such as improving budget evaluation, implementing a performance-based management system, and optimizing revenue collection strategies through information technology. This is expected to encourage better efficiency and effectiveness of budget management in the future so that it is in line with the VfM principle, which demands the use of funds economically, efficiently, and effectively.