Analysis of The Implementation of Performance-Based Budgeting For Village Funds (Case Study In Berau District)

Abstract

This study aims to examine the relationship between several variables, namely: the implementation of performance-based budgeting, budget absorption, accountability, and the use of performance information in formulating plans and budgets. The research was conducted at the Village Government in Berau Regency which achieved the status of an Independent Village by using all Village Officials as research objects. The research respondents were village apparatus who were directly involved in planning and budgeting formulation practices, as well as village performance accountability reporting. A total of 150 questionnaires were distributed, and only 97 were completely filled out and testable. Hypothesis testing was carried out using the Structural Equation Model (SEM) approach. The results of the study show that performance-based budgeting is positively related to budget absorption and accountability of village officials. In addition, good accountability also makes relevant village government officials use accountability reports as a reference in planning and budgeting for the next period in village governments with independent village status.