The Effect of Budget Ratcheting on Financial and Non-Financial Performance
Endang Tri Pratiwi, Rudi Abdullah, La Ode Dedi Abdullah, Asrianti Dja’wa
Endang Tri Pratiwi
Available Online 12 February 2020.
- https://doi.org/10.2991/aebmr.k.200205.006How to use a DOI?
- budget, budget ratcheting, financial performance, non-financial performance
- 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.
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 -