DETERMINANTS OF PERFORMANCE BASED BUDGETING AND THE IMPLICATION TO E-GOVERNMENT

Abstract

The implementation of good government governance has always been public focus. Ironically, based on the results of the findings revealed by Finance Investigator Agency (BPK) in the second half of 2016 stated that there were still many problems within public service and government budgeting occurred entirely in every single of public service offices in Indonesia, especially in regional office of law and human rights ministry in West Nusa Tenggara. In order to overcome these problems, the Minister of Law and Human Rights has come with strategic polices those are: the implementation of e-government for entire public services in 2017 and the optimization of performance based budgeting through money follow program paradigm with goal orientation efficiency and refinement of administrative systems. The goals of this study are as follows: 1) to determine the effect of goal orientation and refinement of administrative systems to performance-based budgeting, 2) to test the money follow programs in strengthening the relationship between goal orientation and refinement of administrative systems with performance-based budgeting, 3) and to determine the effect of performancebased budgeting to e-government. This is an explanatory research which using purposive sampling method. There are 53 respondents from the management of the budget and public service personnel were observed. The analysis tool uses smartpls 3.0. The result shows that 1) the goal orientation does not influence the performance-based budgeting, while completion system administration has a positive influence on performance-based budgeting, 2) on the testing of Money follow program, it can not strengthen the relationship between orientation goal and completion administration system with performance-based budgeting, 3) performance-based budgeting has positive influence to e-government. Furthermore the research theoretically contribute in supporting both institutional theory and implementation policy theory. Another contribution, as practically, is an evaluation of performance based budgeting and e-government implementation within public service area. The other, policy making, is to briefly derivate and explain the regulation No. 90 Year 2010 about Preparation of Work Plan and Budget Ministry / Agency.