The Effect of Harmony Ratio, Growth Ratio, and Independence Ratio on the Human Development Index in Central Kalimantan Province (2011–2020)

Abstract

This study analyzes the influence of regional financial performance on the Human Development Index (HDI) in Central Kalimantan Province during 2011–2020. It investigates how budget allocation and spending effectiveness affect public welfare. The main research question is whether the harmony ratio, growth ratio, and fiscal independence ratio significantly affect HDI individually and simultaneously. The novelty of this study lies in integrating three key fiscal performance indicators into a single model, which have rarely been examined collectively in previous research. Using a quantitative approach and secondary data from BPS, the study employs multiple linear regression analysis via SPSS. The results indicate that the harmony and growth ratios negatively and significantly affect HDI, while the fiscal independence ratio has a positive and significant impact. Simultaneously, all three variables significantly influence HDI. The findings conclude that human development success is closely tied to spending patterns and fiscal autonomy. The study underscores the importance of strategic budgeting and enhancing local revenue capacity to improve quality of life.