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except the seven regions that experienced an increase in economic growth. The region includes
Ponorogo, Malang, Jember, Bojonegoro, Gresik, Bangkalan and Kediri. Economic growth the
region varies between 0.07 to 7.19. In 2014 economic growth was highest in Bangkalan, while
economic growth was lowest in Sampang. Both of these areas are included in Madura Island region
has a substantial contribution to East Java in the mining and quarrying sector, especially oil and
gas mining.
Income per capita is often referred to as the GDP per capita is used to see if people’s income
increases every year. The GDP per capita is one indicator that has the highest score in the outer
loading variable construct of effectiity is 0.855 or 85. GDP per capita East Java in 2014 occurred
in the town of Kediri Rp 315 960 thousand and was followed by Surabaya Rp 128 820 thousand,
Gresik Rp 67 048 thousand, Sidoarjo regency Rp 62 717 thousand and Pasuruan Rp 60 269
thousand. Economy is always growing during 2010-2014 followed by an increase in GDP per
capita in all regions. Its growth varies between 5.16 to 38.89. GDP per capita growth was
highest in Sumenep 38.89 while the lowest growth occurred in Bangkalan 5.16. This
condition proves that expenditure quality which high will be increase GDP per capita.
Human Development Index in East Java is still below the national HDI levels from year to
year. East Java has a HDI level of 71.06 in 2009 and continued to increase until the year 2013 reached
73.54. An increase that occurred in East Java has yet to reach the level of HDI at the national level.
This illustrates that the quality of the population in East Java is still below the average growth rate
of the National IPM both in terms of productivity, equity, sustainability and empowerment. From
the side it is expected that society can continue to produce so the development process continues
to run smoothly. In addition it also followed by equalization indicating equitable access to
economic and social resources for the entire population in East Java. One area that has a very
high HDI value in 2014 in the province of East Java city of Surabaya at 78.97 while the districts
with the lowest HDI value is Sampang amounted to 62.39. Based on pre-deined categories that
Surabaya among the regions with medium HDI category while Sampang including low category.
So, human development index in East Java must be increased to get expenditure quality well. HDI
give the second high score in construct effectivity is 82. This important to increase three category
like us health, education, and a decent life to support expenditure be eficiency. This result
different with research before shows that there was no signiicant effect between spending allocations
directly to the quality of human development as measured using the Human Development Index
HDI Vegirawati, 2012.
5. Conclusion
Expenditure quality as expenditure allocated by regional development priorities done
eficiently and effectively, timely, transparent, and accountable. This research was conducted
to look at the expenditure quality in East Java through the kinds of expenditure qualithy:
personnel expenditure, capital expenditure, expenditure of goods and services, expenditure
grants, social assistance expenditure, exenditure for the results, inancial aid expenditure and
expenditure was not unexpected. Expenditure quality is very important to know what potential
or program has been implemented in an area. Measuring the quality of expenditure areas
require particular model because it is an abstract concept or can not be measured directly.
This research aims to look at whether expenditure government has been targeted,
timely and beneicial to society. This research also establish a model of expenditure quality from
a wide range of variable indicator constructs. This research in East Java because it is one of province
the best in Indonesia. thus aims to determine what indicators has a maximum score and need to be
optimized while indicators that have lowscore will be increased. This research to measure indicators
Jurnal Ekonomi Pembangunan, ISSN 1411-6081 191
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Jurnal Ekonomi Pembangunan, 17 2, December 2016, 176-192
that affect the expenditure quality in East Java and knowing the performance of expenditure
quality district. Beneit from this research is policy makers in this regard the government as
policy makers in expenditure through the budget to improve the potential of the region and public
services. Beside that, to know any district that has a very high capability in managing expenditure
regional.
Local expenditure quality consist of ive variables construct each have a number of
different indicators. Based on the results obtained by processing 21 indicators that inluence the
expenditure quality in East Java. From ive variables that have the highest inluence on
expenditure quality is effectivity. Effectivity has a value of more than 50 in describing variations
of expenditure quality model in East Java. The path coeficients associated positively and
signiicantly there are 4 of them accountability that inluence signiicantly the local expenditure
quality 0.21; 2.03, signiicantly inluence the effectiveness of the allocation 0,47; 6,67,
priorities which inluence to accountability 0,37; 3,75 and the priorities that signiicantly
inluence the timeliness 0.34; 3.53. Besides map changes of expenditure quality from 2009 to 2012
has increased continuously. In 2009 the region has a low level of quality of spending by 37
and in 2014 there was no region that has a lower expenditure quality category. In 2014 only three
categories medium, high, very high. It shows that East Java every year has resulted of local
government performance is better in order to have an positive impact on development conditions.
Available with local expenditure quality of East Java can determine each districtcity potential of
what is supposed to allocate expenditure needs to be improved in the region targeted, accountable
and effective.
Based on the research that East Java is supported by high effectivity consist of indicators
poverty, economic growth, GDP per capita and Human Development Index. So, suggestion in
this research is need a policy that give to increase local expenditure quality, especially region that
have growth rates below the national average on the timeliness of the budget. Suitability priority
should also be improved better to be more in line with the development activities planned in
each unit work. Available to need for alignment between the regulation of regional development
planning, inancial management and inancial accounting systems and performance evaluation
of regional development. It aims to improve the capacity of Government oficials and active
role society in development priorities through expenditure quality.
6. Acknowledgments
