Proceedings of the Seventh Padang International Conference On Economics Education, Economics, Business and Management, Accounting and Entrepreneurship (PICEEBA 2021)

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Analysis of the Budget-ratcheting Phenomenon in Local Government Budgeting in West Sumatra Province

Authors
Vita Fitria Sari1, *, Fefri Indra Arza2, Annisa Ayu Syafitri3
1Department of Accounting, Faculty of Economics, Universitas Negeri Padang, Padang, Indonesia
2Department of Accounting, Faculty of Economics, Universitas Negeri Padang, Padang, Indonesia
3Department of Accounting, Faculty of Economics, Universitas Negeri Padang, Padang, Indonesia
*Corresponding author. Email: vitafitriasari@gmail.com
Corresponding Author
Vita Fitria Sari
Available Online 23 November 2021.
DOI
10.2991/aebmr.k.211117.035How to use a DOI?
Keywords
agency theory; budget-ratcheting; local government; performance budgeting
Abstract

Reformation that happened in Indonesia brought many changes in government system, which one is changes from centralized systems to decentralized systems. The decentralization systems constrain every local government to manage their own household affairs include budgeting process. Indonesia adopts performance budgeting that concern on outcome as the key characteristic. Based on agency theory, regional government acts as agent that runs the government budgeting process. In fact, budget preparation process has various risks and incrementalism in budgeting process often occurs which arises budget ratcheting. This study aims to identify whether budget-ratcheting phenomenon occurs in local government budgeting in West Sumatra province. The population of this study are 19 districts/cities in West Sumatera Province with total sampling method. This research classified as descriptive quantitative study. The result indicated that budget-ratcheting effect occurs in each component of local government revenue, balance fund and capital expenditure.

Copyright
© 2021 The Authors. Published by Atlantis Press International B.V.
Open Access
This is an open access article under the CC BY-NC license.

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Volume Title
Proceedings of the Seventh Padang International Conference On Economics Education, Economics, Business and Management, Accounting and Entrepreneurship (PICEEBA 2021)
Series
Advances in Economics, Business and Management Research
Publication Date
23 November 2021
ISBN
10.2991/aebmr.k.211117.035
ISSN
2352-5428
DOI
10.2991/aebmr.k.211117.035How to use a DOI?
Copyright
© 2021 The Authors. Published by Atlantis Press International B.V.
Open Access
This is an open access article under the CC BY-NC license.

Cite this article

risenwbib
TY  - CONF
AU  - Vita Fitria Sari
AU  - Fefri Indra Arza
AU  - Annisa Ayu Syafitri
PY  - 2021
DA  - 2021/11/23
TI  - Analysis of the Budget-ratcheting Phenomenon in Local Government Budgeting in West Sumatra Province
BT  - Proceedings of the Seventh Padang International Conference On Economics Education, Economics, Business and Management, Accounting and Entrepreneurship (PICEEBA 2021)
PB  - Atlantis Press
SP  - 56
EP  - 64
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.211117.035
DO  - 10.2991/aebmr.k.211117.035
ID  - Sari2021
ER  -