LITERATURE REVIEWS FACTORS AFFECTING THE EFFICIENCY PERFORMANCE OF LOCAL GOVERNMENT BUDGETS IN INDONESIA

Abstract

This study aims to determine the efficiency of local government budget performance in Indonesia and the clarity of budget objectives by local governments in Indonesia. The method used in this study is the study of literature. The type of data used in this study is secondary data, which comes from research journals that have been reprocessed. This research instrument is data on Factors That Affect the Efficiency of Local Government Budget Performance in Indonesia. Where the journal is used as a reference, data references are determined from the internet and accredited journal website sources. Then the data obtained are analyzed, deduced, and studied to get the conclusion of the literature study. The results showed that a benchmark could be found about the performance of the Local Government budget in Indonesia in regional financial management so that conclusions can be drawn, and the performance of the implementation of the Regional Government Budget, in general, can be categorized as quite good. Specifically, it is quite good in income because the average regional income growth, especially in PAD growth, shows a positive average growth. As for the degree of decentralization and the level of independence, it is known that local governments have not been able to finance their expenses. In other words, they are still very dependent on the central government. The clarity of budget objectives is measured to the extent that budget objectives are clearly and accurately defined so that the person in charge of budget implementers can understand the budget. Clarity of budget objectives makes sense for employees who must budget in line with the goals to be achieved that have been pre-planned by government agencies. Therefore, budget targets need to be planned precisely and easily understood because they will help employees achieve the expected performance. By knowing the budget targets, the level of performance can be achieved. budget targets need to be planned precisely and easily understood because they will help employees achieve the expected performance. By knowing the budget targets, the level of performance can be achieved. budget targets need to be planned precisely and easily understood because they will help employees achieve the expected performance. By knowing the budget targets, the level of performance can be achieved.