Performance-based Budgeting System Research Articles

Budget Implementation Strategy Performance Based At The Ministry Of Religion Office Muara Enim District

In the implementation of performance-based budgeting, an implementation strategy is needed so that it can achieve optimal results. The purpose of this research is to find out and analyze the process of implementing performance-based budgeting, to find out and analyze what factors influence the preparation of the 2022 budget by the Office of the Ministry of Religion of Muara Enim Regency in implementing the Performance-Based Budgeting system and to find out and analyze strategies in implementing performance-based budgeting at the Office of the Ministry of Religion of Muara Enim Regency. The research uses a qualitative descriptive approach by collecting data through observation, interviews, and documentation as well as data analysis. The results of the study show that 1) Implementation of performance-based budgeting at the Office of the Ministry of Religion of Muara Enim Regency has not achieved optimal results 2) Factors that influence the implementation of performance-based budgeting at the Office of the Ministry of Religion of Muara Enim Regency include: Communication, Resources People, Attitudes and Bureaucratic Structure and 3) Strategy in implementing performance-based budgeting for the Office of the Ministry of Religion of Muara Enim Regency using the Strengths – Opportunities strategy approach. Improving Human Resources (HR), especially in the Planning section, having regular internal meetings, and in preparing the budget should be guided by the Standard Operating Procedures that have been established so that the implementation of performance-based budgeting can run optimally.

Faktor-faktor yang memengaruhi implementasi anggaran berbasis kinerja

Performance-based budgeting systems are becoming increasingly popular in developed countries around the world. Previous or related research is very important in research or scientific article writing. Previous research or related research helps strengthen the theory and phenomenon of the relationship or effect between variables. This paper examines the factors that influence the implementation of performance budgeting, namely: organizational commitment, resources and incentives and sanctions, as well as literature research on national financial management. The purpose of writing this article is to establish the hypothesis of influence between variables for further research. The results of this literature review are: 1) Organizational commitment influences performance budget implementation; 2) Resources influence the implementation of performance budgets; 3) Rewards and penalties affect the implementation of the performance budget.

SISTEM ANGGARAN BERBASIS KINERJA PADA UNIVERSITAS MUHAMMADIYAH PAREPARE

Performance-based budgeting emphasizes more on the utilization of available funds to achieve optimal results. Performance-based budgeting is oriented toward organizational output and is closely related to the vision, mission, and strategic plans of the organization, for example, the University Muhammadiyah of Parepare, so this study aims to determine the implementation of a performance-based budgeting system at the University of Muhammadiyah Parepare. The data collection techniques used in this research are interviews, documentation, and observation. Informants in this study were the Head of the Bureau and several exchequers of the University of Muhammadiyah Parepare. The data analysis technique in this study used descriptive qualitative analysis. The implementation of performance-based budgeting at the University of Muhammadiyah Parepare has been going quite well. However, in the implementation of its activities there are still obstacles, such as the budget that has been planned but has not been realized. This budget is not only based on what is spent, as is the case in the traditional budget system, but is also based on certain objectives/plans whose implementation needs to be prepared or supported by an adequate budget and the use of these costs must be efficient and effective. The implementation of performance-based budgeting at the University of Muhammadiyah Parepare consists of four indicators, namely the planning/budget preparation stage, the budget implementation stage, the reporting and budget evaluation stages

Extending a fuzzy network data envelopment analysis model to measure maturity levels of a performance based-budgeting system: A case study

Performance-based budgeting (PBB) aims to formulate and manage public budgetary resources to improve managerial decisions based on actual performance measures of agencies. Although the PBB system has been overwhelmingly applied by various agencies, the progress and maturity of its implementation process are not satisfactory at large. Therefore, it warrants to find, evaluate and improve the performance of organisations in relation to implementing a PBB system. To do so, the composite indicators (CIs) have been proposed to aggregate multiple indicators associated with the PBB system, but their employment is contentious as they often lean on ad-hoc and troublesome assumptions. Data envelopment analysis (DEA) methods as a powerful and established tool help to contend with key limitations of CIs. Although the original DEA method ignores an internal production process, the knowledge of the internal structure of the PBB systems and indicators is of importance to provide further insights when assessing the performance of PBB systems. In this paper, we present a budget assessment framework by breaking a PBB system into two parallel stages including operations performance (OP) and financial performance enhancement (FPE) to open up the black-box structure of the system and consider the indicator hierarchy configuration of each stage. In situations of the hierarchical configuration of indicators, we develop a multilayer parallel network DEA-based CIs model to measure the PBB maturity levels of the system and its stages. It is shown that the discrimination power of the proposed multilayer model is better than the existing models with one layer and in situations of relatively small number of DMUs the model developed in this paper can be a good solution to the dimension reduction of indicators. Moreover, this research leverages fuzzy logic to surmount the subjective information that is often available in collecting indicators of the PBB systems. The major contribution of this research is to examine a case study of a PBB maturity award in Iran, as a developing country with a myriad of financial challenges, to adopt a PBB maturity model as well as point towards the efficacy and applicability of the proposed framework in practice.

The performance based budgeting as a catalyst for effective delivery of primary health care

The main aim of this article is to explore how performance-based budgeting has an effect on primary health care service delivery in the Eastern Cape. This article assessed the performance-based budgeting system in the Eastern Cape Department of Health in an attempt to advocate for effective and efficient health service delivery. The Eastern Cape Province is succumbing to insufficient funding at the provincial level and this has a clear-cut reflection on the administration of services within respective departments. The article is premised on a constructivist paradigm that adopts a qualitative approach where document analysis was employed for collecting data. The Eastern Cape Province is succumbing to insufficient funding at the provincial level and this has a clear-cut reflection on the administration of services within respective departments. The article employed the Public Choice Theory and the Concept of New Public Management. Three main findings emerged from the article of the crippled funds in the province, the human resources crisis, poor public finance management, and shortage of health equipment. Data were analyzed using thematic analysis to examine the distinctive themes and sub-themes identified from within the reviewed literature. Recommendations were thus given based on the discussed and derived themes to ensure that there is an appropriate budgeting system to ensure efficient and effective provision of health care services in the Eastern Cape Department of Health.

The Investigation of Main Determinants of Real Time Performance based Budgeting in Iran

The main aim of this paper is to investigate the indicators affecting the establishment of a real time performance-based budgeting system in Iran. Given that the results of this study can be used in the development of budget rules and regulations based on public sector performance, it is practical research. To achieve this purpose, a questionnaire consisting of 28 questions was designed by researchers through interviews with experts. Research information was collected in the form of a questionnaire that was distributed electronically and manually and referred directly to the statistical population in the form of 310 questionnaires during the year 1400. The empirical results of the exploratory analysis test showed; In terms of environmental factors; Legal requirements, political acceptance and rules and regulations (transparency and accountability), reform of the structure and duties of the program and budget organization and attention to social and communication capital in terms of human factors; Motivational and managerial policies and organizational factors; Existence of a comprehensive database, infrastructure and information technology (such as organizational design and the existence of integrated systems with an integrated reporting approach) from the perspective of information technology, elimination of valueless activities, value- chain reform, optimal use of organizational resources from a process perspective and the establishment of strategic planning system, accounting and auditing system (management performance and From the point of view of performance planning and management, it is one of the main effective factors in establishing real time reporting performance-based budgeting in the public sector of Iran.

Evaluation of Budgeting Policy of the Ministry of Industry in Order to Improve the Performance of the Small and Medium Industrial Sector

Reform in the field of budgeting is characterized by a paradigm shift in the field of budgeting planning set out in law No. 17 of 2003 which is indicated by 3 (three) approaches, namely the implementation of integrated budgeting, the implementation of medium-term spending frameworks and the implementation of performance-based budgeting. But there are some problems encountered such as there are revisions to activities in the current budget year, performance-based budgets are so detailed in the planning stage but when accountability becomes administrative, the pattern of budget absorption that accumulates at the end of the year and the distribution of budgets that are not appropriate are part of the obstacles in improving the industrial sector. This research has the aim (1) of evaluating the suitability of budgeting of the Ministry of Industry with a budgeting approach; (2) Analyze spending activities at the Ministry of Industry that significantly affect the SMEs sector. The results showed that all the principles and components that make up the concept of integrated budgeting, performance-based budgeting and medium-term spending framework have basically been implemented by the Ministry of Industry in the preparation of work plans and budgets. The results of the double linear regression analysis showed that the realization of the Ministry of Industry's spending on HR development spending and technology spending significantly negatively affected the productivity shown performance in the SMEs sector. Managerial implications that can be given, namely the need for increased awareness and high commitment from all ranks in the Ministry of Industry in the implementation of performance-based budgeting systems through the provision of rewards and punishments at the internal level of the Ministry of SMEs. Keywords: Budget, Ministry of Industry, Multiple Linear Regression, Small and Medium Industries.

Effect of Performance-Based Budgeting and Financial Reporting Systems on the Performance Accountability of Bekasi Regency Government Agencies

This study aims to determine and analyze the effect of performance-based budgeting and financial reporting systems on the performance accountability of Bekasi Regency Government Agencies. This study uses a quantitative survey method by distributing questionnaires to the finance department in each regional unit of Bekasi Regency. The population in this study were 38 regional work units of Government Agency Performance Units (SKPD) in Bekasi Regency. Determination of the sample with this study using random sampling method so that a sample of 125 people was obtained where 3 to 4 people were in the finance department in each regional unit in Bekasi Regency. The data were analyzed using descriptive statistical analysis and partial least squares analysis (SEM-PLS) with the smart PLS 3.0 software program. The results of this study indicate that performance-based budgeting has a significant effect on the performance accountability of Bekasi Regency Government Agencies. Financial reporting systems has a significant effect on the performance accountability of Bekasi Regency Government Agencies.

Is Performance-Based Budgeting Only a Mirage?

The aim of this paper is to describe reality of performance-based budgeting in Indonesia. Bureaucratic reform still becomes important issue in the government area, especially in developing countries, including Indonesia. One part in bureaucratic reform is the change in government budgeting system. In many countries, this case seems to be imposed, thus the implementation is inappropriate to its truly concept. Critical theories become paradigm used in this paper. Critical theory of Habermas selected as methodology in achieving goal towards the writing of this paper, because Habermas’s thought is very suitable to the issue raised in this paper, which is consensus path that replaces revolution path as offered by Marx. The importance of interaction emphasized on Habermas’s thought becomes basic of analysis due to the interaction or communication based on norm, inter-subjective, demanding role internalization, demanding maintenance of social institution, and action in order to achieve understanding. Performance-based budgeting that should become solution in achieving people welfare still not optimally implemented yet. Physically, the resulted budget has been in performance-based budgeting; however, in fact, indicators of budgeting benefit to the fulfillment of public service still ignored. The incremental system, planning that not based on performance, budget inefficiency to the useless expenditure for public, high political interference, also less budgeting control keep involved in regional budgeting in Indonesia. Contradiction between politics and budgeting culture that implemented recently is obstacle for maximal implementation of performance-based budgeting system. This is the reason why the implementation of performance-based budgeting system in developing countries, including Indonesia, cannot be the same with developed countries. There are many research opportunities that can be followed up from this paper such as study about budgeting culture using ethnography perspective and in-depth research about philosophical aspect from performance-based budgeting ideology with state ideology.

Intervening Role of Performance-Based Budgeting in the Relationship between Transformational Leadership, Organizational Commitment and University Performance

This study aims to investigate the influence of transformational leadership and organizational commitment on performance-based budgeting systems of Indonesian universities. It also examines the impact of performance-based budgeting systems on universities' performance and the role of performance-based budgeting as an intervening variable. The population in this study was private universities registered in Indonesian Higher Education Service Institutions (or Lembaga Layanan Pendidikan Tinggi / LLDikti) region XIII Aceh, Indonesia. The samples were selected using convenience sampling method. There were 130 completed questionnaires collected and analyzed using Partial Least Square. This study found that transformational leadership and organizational commitment have no direct effect on university performance, while the performance-based budgeting system has a significant positive effect on the performance of universities. This study also found that a performance-based budgeting system serves as an intervening variable in the relationship between transformational leadership and organizational commitment concerning higher education performance.

Institutional work and the interplay of stability and change in public budgeting reform: the case of public universities in Iran

PurposeThe purpose of this study is to understand the efforts of key social actors in influencing the reform of Iranian public universities budgeting system, from incremental to performance-based budgeting (PBB), the tensions that arose as competing efforts of institutional change were undertaken, and ultimately the impact of these efforts on the extent to which the Iranian government transitioned to a system of PBB in public universities.Design/methodology/approachData comprises of semi-structured interviews with managers and experts involved in the budget setting process and an analysis of budgetary policy documents, reports and archival material such as legislation. An institutional work lens is employed to interpret the findings.FindingsWhile actors advocating the change were engaged in institutional work directed at disrupting the old budgetary rules by disassociating the rules moral foundations and creating new budgetary rules (through new legislation), universities undertook subtle resistance by engaging in extended evaluation of the new proposed PBB rules thereby maintaining the old budgetary rules. The reforms undertaken to introduce PBB in Iranian universities achieved minimal success whereby incremental budgeting continued to constitute by far a larger percentage of the budget allocation formula for university budgets. This finding illustrates change and continuity in university budgetary systems resulting from institutional work of actors competing to control the basis of resource allocation under the proposed PBB system by proposing contradicting models.Practical implicationsThe findings highlight the importance of understanding the interplay of institutional work undertaken by competing social actors as they seek to advance their goals in shaping budgetary reforms in the public-sector. Such an understanding may inform policy makers who intend to introduce major reforms in public-sector budgeting approaches.Originality/valueUnlike prior studies that largely focused on how organization-level budgeting practices responded to changes in public budgeting rules (i.e. at the site of implementation of the rules), this paper highlights how strategies of change and resistance are played out at the site of setting budgetary norms.

ANALISIS ANGGARAN BERBASIS KINERJA TERHADAP PELAKSANAAN PROGRAM KERJA DI DINAS PEKERJAAN UMUM KOTA PAREPARE

This study aims to see the budgeting system used by the Dinas Pekerjaan Umum of Parepare City in implementing work programs. This research is qualitative, which using interviews as the required data technique. The method of analysis used is descriptive analysis method in explaining the research results from observations and interviews, with sample of research is that government officials within Dinas Pekerjaan Umum of Parepare City which have 18 structural positions. Determination of the sample using purposive sampling, which determines the sample is used due to certain considerations (time, cost, and labor limitations). The results of this study indicate that the Dinas Pekerjaan umum of Parepare City in preparing the budget using to complete existing programs is in accordance with budget preparation. So that, the budget used is accordance with performance based budgeting system that prioritizes the results and impacts of work programs that have been implemented and can help regions in making the main budget for the development of Parepare City effective and efficient, although there are still findings by auditors regarding several things that are not in accordance with reality in the field. However, it can be accounted for and improvements are made to maintain the objectives to be achieved by the Dinas Pekerjaan Umum of Parepare City.

A generalized fuzzy Multiple-Layer NDEA: An application to performance-based budgeting

Network data envelopment analysis (NDEA) is capable of considering operations and interdependence of a system’s component processes to measure efficiencies. There are numerous performance evaluation applications in which some indicators have hierarchical structures with a considerable number of sub-indicators. This problem of ignoring the hierarchical structure of indicators weakens the discrimination power of NDEA models and may result in inaccurate efficiency scores. In this paper we propose a generalized fuzzy Multiple-Layer NDEA (GFML-NDEA) model and GFML-NDEA-based composite indicators (GFML-NDEA-CI) to incorporate the hierarchical structures of indicators in the ambit of the particular two-stage NDEA models. To demonstrate the usefulness of the GFML-NDEA-CI model proposed, its application was tested by evaluating the efficiency of the performance-based budgeting (PBB) system in 14 governmental agencies in Iran. The comparative analysis results obtained from the GFML-NDEA-CI (multi-layer) model with those from the single-layer fuzzy NDEA-CI model indicate that the number of efficient decision-making units (DMUs) in the one-layer model is eight, whereas it is solely one DMU in the multi-layer model. The discrimination power of the multi-layer model proposed is significantly increased by observing that standard deviation of efficiency scores are increased by 41%, 61%, and 84% for possibility levels 0, 0.5, and 1, respectively. This is obtained while reducing information entropy, thus suggesting that the proposed model yields more reliable scores.

TINJAUAN PERUBAHAN SISTEM PENGANGGARAN BERBASIS KINERJA DI INDONESIA

This study aims to analyze changes in the performance-based budgeting system. The method used in this research is descriptive method with a qualitative approach. Data collection techniques using the study of literature. The results show that the budgeting system changes because, in the traditional budgeting system, there are many weaknesses in its implementation. The change of the budget system from the traditional budget system to a performance-based budgeting system was marked by the issuance of Law Number 17 of 2003 concerning State Finance. In reality, it turns out that the application of the performance-based budgeting system is still far from what was expected. There are several difficulties in implementing a performance-based budgeting system, namely the problem of agreeing on appropriate performance measures. Therefore, the implementation of a performance-based budgeting system is only limited to meet the provision.

PENGARUH FISKAL MONETER TERHADAP PEREKONOMIAN INDONESIA

ABSTRACTThis study aims to: analyze whether monetary fiscal policy affects the economy (GDP) of Indonesia and examine whether differences in the budget regime affect the fiscal fiscal governance in supporting the achievement of Indonesia's GDP. Research using quantitative analysis methods; The data used are time series 1990-2010, the analysis technique used is multiple regression with dummy variables. The results show that monetary stability - represented by the variable APBN, financing, investment, BI-rate, exports, imports, inflation, exchange rates and budget regime differences - simultaneously significantly influences GDP development. The level of correlation between the independent variables and the variable variable is quite strong with R-squared 0.9969%. This means that the research variables can explain the dynamics of GDP around 99.69%, the effect is influenced by other variables not examined. Partially, from the results of the statistical analysis, it was found that the APBN, investment, BI-Rate, Imports and the exchange rate had an effect and the difference in the budget system regime had a significant effect on the development of GDP. While the variable financing, exports and inflation have no significant effect on GDP. Cost variables can have a real impact if the standard error is raised to 19%. Exports can significantly affect GDP if the standard error is raised to 24%. APBN, investment, BI-Rate and budget regime differences are positively correlated to GDP. While imports and the exchange rate are negatively correlated to GDP. The econometric model of the influence of oneter stability with GDP is as follows: GDP $ = 0.3131 * APBN + 1.8437 * INVEST $ + 7.8384 * BI_RATE - 0.00037 * IMPORT - 0.01226 * EXCHANGE $ + 167.02356 * REZIM1 + 181.1681 * REZIM2 + 197.6315. Relatively, the use of an integrated and performance-based budgeting system is better than a balanced budget system. Likewise the performance-based budgeting system is also relatively better than the integrated budgeting system. This means that the budget system reform in Indonesia has been on the right track so far.Keywords: Indonesia, economy, GDP, budget system, monetary stability

Pengaruh Fiskal Moneter terhadap Perekonomian Indonesia

This study aims to: analyze whether monetary fiscal policy affects the economy (GDP) of Indonesia and examine whether differences in the budget regime affect the fiscal fiscal governance in supporting the achievement of Indonesia's GDP. Research using quantitative analysis methods; The data used are time series 1990-2010, the analysis technique used is multiple regression with dummy variables. The results show that monetary stability - represented by the variable APBN, financing, investment, BI-rate, exports, imports, inflation, exchange rates and budget regime differences - simultaneously significantly influences GDP development. The level of correlation between the independent variables and the variable variable is quite strong with R-squared 0.9969%. This means that the research variables can explain the dynamics of GDP around 99.69%, the effect is influenced by other variables not examined. Partially, from the results of the statistical analysis, it was found that the APBN, investment, BI-Rate, Imports and the exchange rate had an effect and the difference in the budget system regime had a significant effect on the development of GDP. While the variable financing, exports and inflation have no significant effect on GDP. Cost variables can have a real impact if the standard error is raised to 19%. Exports can significantly affect GDP if the standard error is raised to 24%. APBN, investment, BI-Rate and budget regime differences are positively correlated to GDP. While imports and the exchange rate are negatively correlated to GDP. The econometric model of the influence of oneter stability with GDP is as follows: GDP $ = 0.3131 * APBN + 1.8437 * INVEST $ + 7.8384 * BI_RATE - 0.00037 * IMPORT - 0.01226 * EXCHANGE $ + 167.02356 * REZIM1 + 181.1681 * REZIM2 + 197.6315. Relatively, the use of an integrated and performance-based budgeting system is better than a balanced budget system. Likewise the performance-based budgeting system is also relatively better than the integrated budgeting system. This means that the budget system reform in Indonesia has been on the right track so far.

PENGARUH ANGGARAN BERBASIS KINERJA DAN SISTEM AKUNTANSI KEUANGAN DAERAH TERHADAP KINERJA INSTANSI PEMERINTAH PADA KANTOR DINAS PEMERINTAH KABUPATEN BADUNG

The purpose of this study was to determine the effect of performance-based budgeting and regional financial accounting systems on the performance of government agencies in government offices in Badung Regency. The population used in this study were all employees working in the Badung Regency Office as many as 1089 people. Determination of the sample using purposive sampling to obtain 102 people as samples. After testing the instrument and testing the classic assumptions, then the data analysis is performed using multiple linear regression analysis, determination, t test, and F test. The analysis showed that the effect of performance-based budgeting on the performance of government agencies obtained a regression coefficient of 0.133, tcount value of 2.291 and t test significance value of 0.024 <0.05, so that H1 was accepted, it can be concluded that performance-based budgeting has a positive and significant effect on the performance of government agencies in the Badung Regency Government Office. The influence of the regional financial accounting system on the performance of government agencies obtained a regression coefficient of 0.698, tcount of 14.181 and t test significance value of 0.000 <0.05, so H2 is accepted, it can be concluded that the regional financial accounting system has a positive and significant effect on agency performance government at the Badung Regency Government Office.

PENERAPAN ANGGARAN BERBASIS KINERJA (PERFORMANCE BASED BUDGETING) DALAM PENGELOLAAN KEUANGAN DAERAH ACEH

Performance-based budgeting aims to show the relationship between funding and performance to be achieved, increase efficiency and transparency in budgeting, increase flexibility and accountability of units in carrying out tasks and budget management. This study aims to: (1) Know the system of implementing performance- based budgeting in the management of regional finances in the Aceh Work Unit (SKPA) and (2) Knowing the obstacles faced in implementing a performance-based budgeting system in the management of Aceh's regional finances. This research uses a qualitative approach and descriptive research type. The population in this study were all (42) Aceh Work Unit (SKPA) which is the organizer of government activities to manage regional finances. The sample in this study is the entire population (total sample). Data collection uses structured interview techniques. Data were analyzed qualitatively. The results of the study show that: (1) Performance-based budgeting system implementation in regional financial management in the Aceh Work Unit (SKPA) is in accordance with applicable regulations both from the RPJMA that refers to the RPJN until the final process of the birth of the DPA SKPA and with the Aceh Government Performance Report and (2) Constraints faced in implementing a performance-based budgeting system in the management of Aceh's regional finances are internal, such as the limitations of Human Resources (HR) in the budget and external fields such as rewards and punishments from local governments to improve the performance of their employees. Conclusions: (1) Performance-based budgeting system implementation in regional financial management in the Aceh Apparatus Work Unit (SKPA) is in accordance with applicable regulations (2) Constraints faced in implementing performance-based budgeting system in Aceh regional financial management are both internal and internal external.

Budget preparers’ perceptions and performance-based budgeting implementation

PurposeThe purpose of this paper is to examine the reason for the failure of implementing performance-based budgeting (PBB) at Iranian public universities and research institutes (PURI). This examination focuses on the actors participating in the budget processes and their perceptions.Design/methodology/approachThe study uses grounded theory and employs deep semi-structured interviews of budget preparers at Iranian PURI.FindingsThe results indicate a loose coupling between perceived and regulated budgeting process. This leads to budgetary slack as a barrier for authentic information flow and indeed PBB implementation. In the analysis of the results, the authors suggest some ways to improve the current situation of the budgeting processes at Iranian PURI.Practical implicationsPublic organizations that desire to transform their budgeting system need to consider their actors’ perceptions regarding the budgeting process. By explicitly considering their perceptions the organization may be able to solve any loose coupling as a result of internal, external and behavioral conditions.Originality/valueThis research examines issues that arise in the transformation of organizational processes. The focus on budget processes is critical for organizations which receive most, if not all, of their operational funds from a central authority. This research highlights the role of budget actors’ perceptions in transforming the budgeting process. An important result of this analysis is documenting the existence of loose coupling in the current budgeting process at Iranian PURI. This loose coupling results in slack creation and restricts the implementation of a PBB system. Additionally, this loose coupling limits the flow of authentic information.

Does Performance-Based Budgeting Have a Correlation with Performance Measurement System? Evidence from Local Government in Indonesia

Abstract This study aimed to empirically test some variables related to Performance-Based Budgeting (PBB) and Performance Measurement System (PMS) implementation in the local government, namely Special Region of Yogyakarta, Indonesia. This study applied the mixed-methods approach with sequential explanatory strategy (QUANTITATIVE to Qualitative). Quantitative stage was conducted by testing the hypothesis using the Structural Equation Model (SEM) approach. On the qualitative stage, the interview was conducted to dig more information on the unsupported hypothesis. From the result of the hypothesis testing, it was discovered that the limitation of information system had a negative influence, while education had a positive influence towards the effectiveness of PBB. Furthermore, the effectiveness of PBB had a positive influence towards budget absorption, and the accountability also had a positive influence towards the use of performance information to practice the arrangement of PPB. Meanwhile, the qualitative analysis produced the finding that there were practices of PBB that could still be done manually and it was not supported by information technology. Besides, the implementation of PMS and PBB was more because of the coercive pressure rather than consciousness of normative apparatus.