Budget Absorption Analysis of Financial Performance in Production Forest Areas in Karawang Regency

Abstract

This research comprehensively explores and analyzes the causal relationship between budget planning, budget execution, and the government's internal control system on budget absorption, as well as the impact of budget absorption on financial performance. The research method used is a quantitative description technique involving 200 respondents as a sample. Path analysis is used as a quantitative data analysis tool in this study. The research results show several important findings, namely: 1) Budget planning has a significant influence on budget absorption in the forestry production area in Karawang. 2) Budget compliance has an impact on budget absorption in the Karawang production forest area. 3) The government's internal management system has an impact on budget absorption in the Karawang production forest area. 4) Budget absorption has an impact on financial performance in the Karawang production forest area. 5) Budget absorption plays a role as a mediator between budget planning and financial performance in the production forest area of Karawang Regency. 6) Budget absorption plays a role as a mediator between household implementation and financial performance in the production forest area of Karawang Regency. 7) Budget absorption plays a role as a mediator between the government's internal management system and financial performance in the Karawang production forest area