Proceedings of the 4th International Conference on Management, Economics and Business (ICMEB 2019)

The Effect of Budget Ratcheting on Financial and Non-Financial Performance

Authors
Endang Tri Pratiwi, Rudi Abdullah, La Ode Dedi Abdullah, Asrianti Dja’wa
Corresponding Author
Endang Tri Pratiwi
Available Online 12 February 2020.
DOI
https://doi.org/10.2991/aebmr.k.200205.006How to use a DOI?
Keywords
budget, budget ratcheting, financial performance, non-financial performance
Abstract
Performance-based budgeting on the local government focuses on achieving public sector performance that is not only assessed from its financial aspects such as ratios and budget realization, but also includes non-financial aspects such as the use of performance indicators and assessment of community satisfaction levels. One of them is budget ratcheting. This study aims to determine the effect of the budget ratcheting on the performance of the local government of Baubau City in terms of financial and non-financial aspects. The population was the local government of Baubau City that published financial statements from 2014 to 2016 and sampling method was through judgment sampling, namely the selection of samples with consideration of convenience. Data collection was done through direct observation and nonparticipant observation. This study uses descriptive and inferential analysis. The results indicate that Correlation Coefficient (R) was obtained at 0.871 meaning there is a correlation between budget ratcheting on the performance. It was due to increase in the planned budget and expenditure based on the realization of the costs obtained in the budget and expenditure in the previous period. Thus, the local government performance of Baubau City during 2014 to 2016 from the financial and non-financial sectors showed good conditions.
Open Access
This is an open access article distributed under the CC BY-NC license.

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Proceedings
4th International Conference on Management, Economics and Business (ICMEB 2019)
Part of series
Advances in Economics, Business and Management Research
Publication Date
12 February 2020
ISBN
978-94-6252-903-8
ISSN
2352-5428
DOI
https://doi.org/10.2991/aebmr.k.200205.006How to use a DOI?
Open Access
This is an open access article distributed under the CC BY-NC license.

Cite this article

TY  - CONF
AU  - Endang Tri Pratiwi
AU  - Rudi Abdullah
AU  - La Ode Dedi Abdullah
AU  - Asrianti Dja’wa
PY  - 2020
DA  - 2020/02/12
TI  - The Effect of Budget Ratcheting on Financial and Non-Financial Performance
BT  - 4th International Conference on Management, Economics and Business (ICMEB 2019)
PB  - Atlantis Press
SP  - 23
EP  - 27
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.200205.006
DO  - https://doi.org/10.2991/aebmr.k.200205.006
ID  - Pratiwi2020
ER  -