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Submitted
September 28, 2025
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November 11, 2025
Published
November 21, 2025
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Abstract

This study investigates the influence of regional financial independence and financial effectiveness on the quality of public services in Indonesia. It underscores the significance of public sector accounting particularly the analytical use of local government financial statements as a crucial instrument for evaluating fiscal accountability and enhancing service delivery performance. Employing secondary data from 1,620 local governments over the 2021-2023 period, the analysis utilizes panel data regression with a random effects model. The empirical results reveal that fiscal independence exerts a positive and significant impact on service quality, whereas financial effectiveness demonstrates a negative relationship. These findings indicate that transparent and accountable fiscal capacity tends to foster better service outcomes, while effectiveness without adequate governance oversight may lead to inefficiencies and misallocation of resources. Despite the limited observation period and the use of a single service quality indicator, this study makes a theoretical contribution by offering an integrated framework that connects fiscal autonomy, governance quality, and public service performance within a decentralized setting. From a policy standpoint, the results call for a paradigm shift from efficiency-oriented fiscal management toward a governance-driven fiscal strategy that prioritizes accountability, transparency, and citizen-centered service improvement.

Keywords

effectiveness independence regional finance quality of public service

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Copyright (c) 2025 Anisah Fadhilah, Rahma Masdar, Andi Chairil Furqan, Masruddin

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This work is licensed under a Creative Commons Attribution 4.0 International License.

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

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Author Biographies

Rahma Masdar, Universitas Tadulako, Palu

Dosen S1 Akuntansi

Andi Chairil Furqan, Universitas Tadulako, Palu

Wakil Dekan Fakultas Ekonomi dan Bisnis Universitas Tadulako

How to Cite
Fadhilah, A., Masdar, R., Furqan, A. C., & Masruddin. (2025). THE INFLUENCE OF REGIONAL FINANCIAL INDEPENDENCE AND EFFECTIVENESS ON THE QUALITY OF PUBLIC SERVICES . CURRENT: Jurnal Kajian Akuntansi Dan Bisnis Terkini, 6(3), 596–606. https://doi.org/10.31258/current.6.3.596-606
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