Determinant of the effectiveness of performance-based budgeting implementation and budget absorption in regional government of Bengkulu Province

Abstract

This study aimed to find out the effect of understanding, training, external pressure and organizational commitment on the effectiveness of performance-based budgeting implementation and budget absorption in the Regional Government of Bengkulu Province. This study was based on the importance of information on performance-based budgeting and budget absorption. The samples taken were from 17 Regional Apparatus Organizations in the Regional Government of Bengkulu Province with a questionnaire that could be researched totalling 90 respondents. The technique of collecting data was using quantitative data by distributing questionnaires and giving them to each respondent with the criteria of having an interest in compiling, using and reporting budget realization or executing the budget from the Regional Government. Hypothesis testing used Smart PLS 3.3. The results of hypothesis testing showed that understanding and training had a significant effect on the effectiveness of performance-based budgeting implementation and had a positive effect on budget absorption. Meanwhile, the external pressure variable had a significant influence on the budget absorption variable but had a negative effect on the effectiveness of performance-based budgeting implementation. In the organizational commitment and effectiveness of performance-based budgeting implementation variables, it had a negative or no significant effect on budget absorption.