Analysis of Budgetary Slack Trigger in Government Institutions (Case Study at Bureau X Ministry of Y)

Abstract

This study aims to determine the causes of budgetary slack and the impact it has on government agencies so that in the future a policy can be developed that can reduce the occurrence of Revenue and expenditure budgetary slack . This research is a qualitative research using the case study method. Data collection was carried out by means of interviews, observation, and documentation at Bureau X Ministry of Y. The results of this study indicated that budgetary slack occurred due to: first, receivables that were not included in the calculation of revenue targets, second, time constraints in preparing the budget, third, changes in government policies that creating uncertainty in the implementation of work, fourthly limited human resources, fifthly dynamics in budget execution, and sixthly there is performance appraisal. In this case, it was found that the impact arising from budgetary slack was the potential for inefficient spending and a lack of motivation to achieve the revenue target as indicated by the presence of receivables. The strategy implemented to reduce budgetary slack is the existence of guidelines in preparing the budget, setting priority scales in spending, employee participation in preparing the budget, and the existence of budget research and reviews.