Performance based budgeting system to improve the management of local governments

Rosa Nikmatul Fajri (2024) Performance based budgeting system to improve the management of local governments. Doctoral thesis, Universiti Teknikal Malaysia Melaka.

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Abstract

This research aims to investigate the problems of the current budgeting system; investigate the factor that caused; develop a new budgeting system named as performance based budgeting system to improve the management of local governments; and then evaluate it. The novelty of this research is the addition of performance elements, policy components such as minimum service standards, price standards per item, specific measurable, achievable, relevant and time bound (SMART) indicators and community aspirations to determine estimates and more in-depth discussions on inputs, processes, outputs and the outcome of the budget system. Research design uses a qualitative method with a case study approach and action research. Documentation, observation, interviews, validity and reliability test, scoring, media product and focus group discussion as research instrument. The sample of research is 29 people in Central Java who handle the budgeting system. The objective 1 discussion about the current budgeting system problems found that the budget target achieved only 22.50% -22.73%, documents are not consistent; a lack of information; and the control system used is not running optimally because it has a government performance effectiveness ratio in 2010 - 2014 and 2017 - 2019 categorized as very effective while in 2015 and 2016 it was categorized as effective enough. Conclusion 2010 - 2019 level of budget effectiveness in local government is categorized as effective. However, local governments were categorized as not efficient in 2010; less efficient in 2011, 2016; efficient in 2012, 2013, 2014; not efficient in 2014; and very efficient 2018, 2019. Objective 2 discussion about the causative factors found that because the control system is not optimal, data entry manually, unintegrated system, and input errors. Objective 3 discussion about developing a new system was developed by adding performance elements, applying minimum service standards, and Price per item Standard. Objective 4 discussion about the evaluation of the new system are positive findings on indicators 2; 3; 4; 5; 6; 8; 12; 17; 18; 19; 20; 21; 22; 29 and 30. Negative findings on indicators 1; 7; 9; 10; 11; 13; 14; 15; 16; 23; 24; 25; 26; 27; and 28. The conclusion is that the new system has succeeded in contributing to increasing the achievement on several indicators to above 52% in performance. To improve up to 100% the system needs to be further developed by adding menu SMART criteria, minimum service standards, price per item standard and the community aspiration. The conclusions after the improvement with the new effectiveness ratio system in the year 2020-2022 are categorized as very effective in budget management; the level of efficiency in 2020-2022 is categorized as not efficient. While the evaluation from the results of the interview, the effectiveness reached 83% which is interpreted as less effective and the efficiency level reached 40% which is interpreted as not efficient. Recommendations for further research can be carried out in other more complex governments in a longer period of time on more varied indicators.

Item Type:	Thesis (Doctoral)
Uncontrolled Keywords:	Budgeting system, Local government management, Budget effectiveness
Divisions:	Library > Tesis > IPTK
Depositing User:	Muhamad Hafeez Zainudin
Date Deposited:	27 Dec 2024 08:45
Last Modified:	27 Dec 2024 08:45
URI:	http://eprints.utem.edu.my/id/eprint/28328
Statistic Details:	View Download Statistic

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