Expenditure Efficiency in the Implementation of the 2025 Regional Budget: Optimising the Fulfilment of Mandatory Spending in the Province of North Kalimantan

North Kalimantan (Kaltara) is facing significant fiscal challenges in implementing its 2025 Regional Budget, particularly in meeting mandatory spending for education and infrastructure. With over 70% of funding reliant on central government transfers and the suspension of the Special Allocation Fund, the province struggles to expand essential services amid rising costs and limited local revenue. This policy brief highlights strategies to optimise budget efficiency, including digitalising taxation to strengthen Own-Source Revenue (PAD), streamlining personnel expenditure, leveraging Public-Private Partnerships (PPPs), and enhancing collaboration with development partners. By improving governance, reallocating funds from non-essential activities, and adopting impact-oriented spending, Kaltara can better fulfil its mandatory obligations while sustaining equitable growth and access to basic services.