The Influence of Participative Budgeting on Budgetary Slack in Composing Local Governments’ Budget in Bali Province

Abstract

This study examines the influence of participative budgeting on budgetary slack in composing nine local governments' budget of Bali Province, using 'career uncertainty' as the moderating variable. The 'career uncertainty' has received insufficient attention in previous studies on budgetary slack. This study tries to fill this gap. Respondents of this study are 686 middle level employees. The results show that career uncertainty can moderate the relationship between participative budgeting and budgetary slack. The more certain local government employees that they will be placed at the same position in the period of budget realization, the larger the budgetary slack will be.

The Effectivness Analysis of State Expenditure Policy Implementation in Indonesia

“…The technical policy issues of the satker include delays in the appointment of budget management officials, delays in the appointment of goods / services procurement committees, the absence of fund withdrawal planning documents, and the absence of planning documents for the implementation of goods / services procurement, as well as the absence of a reward and punishment mechanism in budget management on the satker. while the cultural problems that occur in the satker are caused by the HR mindset that plays a role in the budget manager, including the principle of excessive prudence, which causes fears in the implementation of the budget, especially the procurement of goods / services, the reluctance of qualified satker HR to become budget managers due to incentives not worth the risk, and the habits of the budget manager delay work and execute activities at the end of the fiscal year [9].…”

Determinating The Value of Capital Expenditure Allocation in Indonesia Local GovernmentDeterminating The Value of Capital Expenditure Allocation in Indonesia Local Government

“…The problems of budget arrangement in the local government in Indonesia is the con ict interest among the local government members. Widanaputra & Mimba (2014) state that the process of participative budgeting on the local government in Indonesia tends to cause a budgetary slack due to the con ict of interest among the government members. The concept of transparency is necessary to generate budget that re ects local needs better.…”

Do Leadership Styles Moderate the Relationship of Organizational Commitment and Budgetary Slack? An Experimental Approach

“…So far, any direct relationship between affective organizational commitment and budgetary slack has not been adequately examined in the prior research. Several studies related to budgetary slack in Indonesia include: testing the influence of reputation on the relationship between information asymmetry and budgetary slack under truth-inducing compensation methods (Brahmayanti and Sholihin, 2006); testing the effect of compliance and perceived responsibility on creating budgetary slack (Grediani and Sugiri, 2010); testing budget participation and budget target clarity on budgetary slack with information on asymmetry, organizational commitment, and budget emphasis as moderating variables (Murtin and Septiadi, 2012); testing whether career uncertainty moderates the relationship between participative budgeting and budgetary slack (Widanaputra and Mimba, 2014); testing the effect of budgetary participation on budgetary slack with information asymmetry, budget emphasis and organizational commitment as moderating variables (Irfan et al, 2016); testing participative budgeting, budgetary slack and job satisfaction in the public sector (Kahar et al, 2016); and investigating whether a shared financial interest in the creation of slack, another employee's awareness regarding misreporting, and perceived fairness affect a manager's honesty in the budget's reporting using a management theory (Rosdini, 2016). Research by Murtin and Septiadi (2012), Irfan et al (2016) used organizational commitment as a moderating variable.…”