Assessing the Impact of Performance-Based Budgeting on Regional Development and Environmental Outcomes Mediated by Government Agency Accountability in Dairi District

Abstract

Provincial autonomy aims to stimulate and augment local capacities, fostering advanced, prosperous societies within autonomous regions. This goal requires the maximization of local potential and the encouragement of region-specific development, tailored to each Province's economic, geographical, and sociocultural attributes. This study employs a quantitative approach, involving 24 Provincial Apparatus Centers (DPOs), 15 districts, and 18 Community Health Centers within the Dairi government. A total of 121 respondents participated in the research. The study encompasses three variables: the dependent variable of provincial expansion, the independent variable of performance-based budgeting, and the mediating variable of government agency activity accountability. Performance-based budgeting scrutinizes the relationship between funding (input) and expected results (outputs), offering insights into the effectiveness and efficiency of activities. Budgets should be designed around the objectives achieved during the fiscal year, and the management and unit expenditures. The findings suggest that performance-based budgeting significantly and positively influences Provincial development in Dairi through the accountability process of government agency implementation, facilitating the evaluation of budget efficiency and effectiveness for Provincial development support programs. As a result, an enhanced level of community welfare, grounded in diversity, is realized.