The purpose of this study is to examine the effect of regional fiscal health on the human development index and the role of mediating regional government performance. Regional fiscal health measured with Brown indicator that modified according to Indonesian conditions, using the PLS-SEM approach model, with 1,125 observations of autonomous regions data in Indonesia in 2012-2016. This study proves that there is significant influence between regional fiscal health on human development index, between fiscal health on regional government performance, between regional government performance on human development index, and the role of partial mediation of regional government performance between the relationships of regional fiscal health to human development index. The main contribution of this study is to improve the understanding of the relationship of regional fiscal health as measured by the Brown indicator on the performance of regional governance and its implications for the human development index. This paper shows that Indonesia successfully applied the New Public Management paradigm.

Keywords : Regional Financial Health, Regional Government Performance, HDI, New Public Management, Indonesia.