DETERMINANTS OF BUDGET PLANNING AND ITS IMPLICATIONS FOR MANAGERIAL PERFORMANCE

Abstract

This study aims to examine how the competency of human resources, risk management, and budget politics affect budget planning and its impact on the managerial performance of the Timor-Leste government. Through the influence of human resource competence, risk management, budget politics, budget planning, and managerial performance, this study explores fundamental truths. This investigation was done across all of Timor-40 Leste’s ministries and institutions. The unit of analysis comprised the General Directors, the National Director of Finance, all internal audit personnel, and institutional leaders. The method of analysis used in this study is Structural Equation Model-SEM based on Partial Least Square-PLS. The results indicated that, with a significance level of 5% (percent), the competence of human resources, risk management, and budget politics had a significant effect in a positive direction on budget planning, indicating that budget planning will improve proportionally to the competence of human resources, risk management, and budget politics. Then budget planning and human resource competence have a considerable positive influence on management performance; this indicates that as budget planning and human resource competence improve, so will managerial performance. Additionally, risk management and budget politics have no effect on managerial performance; this demonstrates that enhanced risk management and budget politics have no effect on managerial performance.