IMPLEMENTATION OF PERFORMANCE-BASED BUDGETING TOWARDS PERFORMANCE OF BANYUMAS LOCAL GOVERNMENT

Abstract

This research purposes to obtain empirical evidence about the impact of performance-based budgeting on managerial practices of local government such as goal clarity, budget adequacy, budget flexibility, budget participation, procedure formalization, and support from higher management towards programme performance of local government.

Respondents of this research are officials in Satuan Kerja Perangkat Daerah (SKPD) Banyumas Regency who participated on forming budgets and programs in SKPD. This research uses primary data derived from questionnaires. There were 94 respondents participated in this research. Then, data was processed and analyzed using multiple linear regression analysis.

The results show that managerial practice of local government such as goal clarity, budget adequacy, budget flexibility, budget participation, procedure formalization, and support from higher management overall has a significant positive effect toward programme performance of local government. Then, goal clarity, budget adequacy, and support from higher management partially has a significant positive effect towards programme performance, and budget participation, budget flexibility, and procedure formalization partially has negative and not significant impact on programme performance of local government.

Keywords: performance-based budgeting, managerial practices, program performance, local government