Analysis of Factor Affecting Budget Absorption of the Local Government Organizations in Asahan Regency

Abstract

This study aims to evaluate and analyze whether budget planning, budget execution, quality of human resources, organizational commitment, the process of procurement of goods/services, and bureaucratic reform affect budget absorption. The population of this study were 31 Regional Apparatus Organizations (OPD) in Asahan Regency. The sampling technique used is purposive sampling, namely the Head of Regional Apparatus Organizations as budget managers, Head of Sub-Division of Finance and Commitment Making Officers in Regional Apparatus Organizations as many as 93 (ninety-three) respondents. This study uses primary data. The data analysis method used is multiple linear regression analysis using Statistical Product and Service Solution (SPSS) software. The results showed that budget planning, the quality of human resources, organizational commitment, and the procurement process of goods/services had a positive and significant effect on budget absorption. Budget implementation does not affect budget absorption, and bureaucratic reform negatively and significantly affects budget absorption. Other results of budget planning, budget execution, quality of human resources, organizational commitment, the procurement process of goods/services and bureaucratic reform simultaneously have a positive and significant effect on budget absorption. Keywords: Budget Planning, Budget Execution, Quality of Human Resources, Organizational Commitment, Goods/Services Procurement Process, Bureaucratic Reform, Budget Absorption