JRSSEM 2022, Vol. 02, No. 3, 403 – 416

E-ISSN: 2807 - 6311, P-ISSN: 2807 - 6494

10.36418/jrssem.v2i03.311 https://jrssem.publikasiindonesia.id/index.php/jrssem

FACTORS AFFECTING BUDGETING: LEADERSHIP STYLE,

SYSTEM AND RESOURCE REFINEMENT

Cris Kuntadi

1

Abstract: This study aims to map the influence of leadership styles, systems, and the improvement

of resources on budgeting. The independent variables are leadership style, systems, and increased

resources while the dependent variable is budgeting in the study of the State Financial

Management Library. The purpose of this study as a literature review is to build hypotheses about

Keywords: Budgeting, Leadership Style, System, and Resource Improvement.

Cris Kuntadi, Djamal Firmansyah | 404

INTRODUCTION

The State Budget (APBN) is a list that

contains details of state revenues and state

expenditures or expenditures for one year,

revenues. The budget serves as a planning

tool control tool, a performance appraisal

tool, a motivational tool, and a tool for

creating public spaces (Mahsun S. and

Heribertus, 2011).

The Regional Revenue and Expenditure

Budget (APBD) is a list that contains details

of regional revenues and regional

expenditures or expenditures for one year

stipulated by Regional Regulations (Perda)

revenue and expenditure budget, it is

sought so that operational expenditures do

not exceed the revenues in the relevant

fiscal year. The preparation of the draft

regional revenue and expenditure budget is

guided by the work plan of local

government in order to realize the

achievement of state goals (Mahsun S. and

Heribertus, 2011).

Budget in a government organization

activities of the government organization.

The budget is used as a work guideline so

that in the process of compiling it requires

activities or programs implemented,

namely by comparing the budget with its

realization. One of the functions of the

budget is as a performance assessment

tool, namely by measuring whether a work

unit has met targets, both in the form of

carrying out activities and meeting cost

efficiency.

According to Mulyadi (2001-488) a

budget is a quantitatively expressed work

finances for the future period. Based on

Law Number 17 of 2003, it is stated that the

budget is a tool of accountability,

management, and economic policy. As an

instrument of economic policy, the budget

serves to realize economic growth and

stability as well as income equality in order

to achieve state goals (Asikin, 2014).

The preparation of the regional revenue

and expenditure budget begins with

that will serve as guidelines for the

preparation of the revenue budget and

expenditure budget. The executive drafts

the regional revenue and expenditure

budget in accordance with the general

policy of the regional revenue and

expenditure budget and budget priorities

which are then submitted to the legislature

to be studied and discussed together

before being designated as regional

The budgeting process contains high

political nuances (Wildavsky, 1991); Rubin,

2014; Purwanto, 2016), opportunistic

behavior (Moe, 1984); (Abdullah, 2012);

(Forrester, 1993) and participation in

budgeting is one way to address the

problem (Mardiasmo, 2002); (Marlowe &

Portillo, 2006) & Portillo, 2006; Im, et al.,

2014) so that people's trust in the

government can be better (Devas & Grant,

spending can be caused by bias in

forecasting revenue budgets (Cassidy et al.,

Systematically made budgeting will be

very useful for planning in the future.

Budget is an important component to

translate organizational strategy, so that

the organization can run well (Munandar,

The involvement and influence of leaders in

the budgeting process is participation in

budgeting in periodic and annual periods

(Brownell, 1982, in Hapsari, 2010).

According to (Kuntadi, 2017) in an

organization, the vision and mission are the

crystallization of values that have been

realized. However, this is not easy to

implement because there are possible

factors such as people in the organization

in the vision and mission of the

organization. To realize that realization is in

line with the vision and mission of the

organization, influence is needed for the

leader to the part involved in the

organization. It is also explained that

leadership is an influence, so the person

who does is more easily imitated than the

person who says it. Because a person is

more easily convinced by actions than by

(Sumarno., 2005) stated that organizational

commitment is an encouragement from

within the individual to do something to

support the success of the organization in

accordance with the goals set and prioritize

the interests of the organization.

Organizational commitment can be a

psychological tool in running an

Cris Kuntadi, Djamal Firmansyah | 406

organization for the achievement of

expected performance (Nouri et al., 1996;

McClurg, 1999; Chong et al, 2002) in

(Kunwaviyah, 2010). According to Randal

(1990) in (Sardjito, 2007) high

organizational commitment will increase

optimal support for its implementation, the

process of preparing the SKPD Strategic

Plan document requires building

commitment and agreement from all

stakeholders to achieve skpd goals through

a transparent, democratic and accountable

process.

According to Been Lee (1970) in

(Alfatih., 2004) the purpose of improving

administration is to improve order, improve

deliberate effort and does not occur by

chance, and is long-term and not

temporary. According to (Bastian, 2006)

performance-based budgeting requires a

public administration system that has been

well laid out, consistent and structured so

that budget performance can be achieved

based on predetermined measures.

According to Tjokroamidjojo (1985) in

Sinaga (2008) mentioned that

regional development.

The condition for the running of an

organization is ownership of resources.

According to Edward III (1980) in (Akib,

implementation of good policies. The

to obtain quantitative data and make its

budgeting decisions. According to

(Kiswara, 2008), the process of obtaining

quantitative data aims to obtain

information and understanding about

various programs that produce expected

outputs and outcomes.

As a plan, the budget reflects

development priorities, partiality to the

public, and the power of power of budget

promote, and there are policies that are felt

to have no effect related to the

performance of an activity in the article

Chairman of the DKI Jakarta DPRD About

Anies changing the name of the Hospital:

Stop creating inconsequential policies, a

policy from the government that is not

approved by the public regarding the

change of street names by the Governor of

DKI Jakarta and the future impact of the

MATERIALS AND METHODS

The method of writing this scientific

article is by qualitative methods and

literature review (Library Research).

Examines theories and relationships or

influences between variables from books

and journals both online sourced from

Mendeley, Scholar Google and other online

media.

In qualitative research, literature review

should be used consistently with

methodological assumptions. This means

that it must be used inductively so as not to

direct the questions posed by the

researcher. One of the main reasons for

conducting qualitative research is that the

research is exploratory (Ali, 2013).

RESULTS AND DISCUSSION

Budgeting.

(Ayu, 2020) examined the Analysis of

Factors Affecting the Preparation and

Application of Performance-Based

Regional Revenue and Expenditure

Budgets (Study on the Organization of

Regional Apparatus of Bima Regency). The

results of the research conducted show

budgeting. In the results of the study, it

was also conveyed related to the influence

of Leadership Style on budget preparation,

namely if not applied a leadership style

directed at openness and is more of a

and will only result in anxiety, pressure, as

well as decreased levels of motivation.

(P. Rumenser., 2014) examined the

Effect of Commitment, Quality of Human

Resources, and Leadership Style on

Budgeting Ability in Manado City

Government. The results of the study

stated that Leadership Style affects

budgeting ability. With the concern of

superiors to provide good and correct

budget will be produced in accordance

with the established guidelines. The results

of this study agree with the previous

research conducted by (Sumarno., 2005).

Cris Kuntadi, Djamal Firmansyah | 408

Budgeting.

(Rasuli, 2018) examined the Influence

of Leadership Style, Improvement of the

Administrative System, Commitment from

All Components of the Organization,

The significance level used is 0.05,

meaning 0 < 0.05. This means that the

improvement of the administrative system

has a significant effect on the preparation

supported by the research of Sembiring

(2009), Mubar et al (2012), and Saffitri

(2012), getting the conclusion that the

improvement of the administrative system

has a significant effect on the preparation

(Ayu, 2020) examined the Analysis of

Factors Affecting the Preparation and

Application of Performance-Based

Regional Revenue and Expenditure

Budgets (Study on the Organization of

Regional Apparatus of Bima Regency).

Based on the results of the research

conducted, it shows that Variable X2

(Administrative Improvement) has a

positive and significant effect on

> 1.672) with a significance of 0.001 less

than α (0.05). This test showed that H0

was rejected and H1b was accepted. These

results show that performance-based

budgeting requires a public administration

system that has been well-organized,

development. Continuous administrative

improvement in the form of preparation of

performance-based budget measurement

instruments continuously through

continuous improvement of performance-

based budget measurement instruments

existing Minimum Service Standards,

Shopping Analysis Standards, Performance

Targets, and Cost Standards are important

factors in the successful preparation of

the Gorontalo Provincial Government.

Research Results The effect of improving

the administrative system on

performance-based budgets is positive

and significant. The positive influence

shows that the effect of improving the

administrative system is in the same

direction as the performance-based

budget or in other words, the

improvement of a good/high

performance-based budget will be low/

laborers. The significant influence shows

that the improvement of the administrative

system has an important role in increasing

performance-based budgets.

(Ismid, 2020) examined the Analysis of

Factors Affecting the Preparation of a

Performance-Based Regional Revenue and

Expenditure Budget in the Aceh Singkil

Regency Government. Research Results,

significant. This means that the

improvement of the administrative system

has a positive and significant effect on

performance-based budgeting. This

research is consistent with semirings

(2009) research found that the

improvement of the administrative system

has a positive and significant effect on

performance-based budgeting. Thus the

hypothesis that states that it is alleged that

performance analysis, minimum service

standards, and cost standards. This

indicator is used as a tool for measuring

performance base budget

implementation. If the improvement of the

administrative system is good/high, it will

affect the preparation of a good/high

performance-based budget, and vice versa

administrative system then performance-

based budgeting will be bad/low (Deliana

& Nasution, 2016).

(R. Yandra & E. Sutrisna, 2013)

examined the Preparation of Performance-

Based APBD. The results showed that the

improvement of the administrative system

did not affect the preparation of

performance-based APBD. The results of

statistical testing showed a significant level

improvement of the administrative system

is one of the factors that influence the

preparation of performance-based APBD.

This shows that the variables of improving

the administrative system do not have an

important role in the preparation of

performance-based regional budgets in

the Siak Regency. The difference between

the results of the study and this hypothesis

is that the Siak Regency Government in the

has limited time, so to catch up with the

deadline sometimes The steps that must

be taken in the existing administrative

system are missed. Thus, the improvement

of the administrative system has a less

significant effect on the preparation of

performance-based APBD.

Cris Kuntadi, Djamal Firmansyah | 410

(P. Rumenser., 2014) examined the

Effect of Commitment, Quality of Human

Resources, and Leadership Style on

Budgeting Ability in Manado City

Government. The results of the study that

are other resources such as budget

resources, information in the form of data

and other supporting facilities. In budget

reporting, it is still found that budget

allocations are not in accordance with the

needs and priority scale and do not reflect

economic, efficient and effective aspects.

(Hasan, 2018) examined the Factors

Affecting Performance-Based Budgeting in

the Gorontalo Provincial Government.

budget or in other words good/high

enough human resources will affect the

good/high performance-based budget,

and vice versa if the human resources are

low enough/bad then the performance-

based budget will low/bad.

(Ismid, 2020) examined the Analysis

Performance-Based Regional Revenue and

Expenditure Budget in the Aceh Singkil

Based on the results of the partial test (t

test) shows that the quality of human

resources has a positive effect and

significant. This means that the quality of

human resources has a positive and

significant effect on performance-based

human resources has an effect and is

significant to the preparation of

performance-based budgets is accepted.

Work organizations are expected to have

carried out the development of skills as

well as mental abilities of personnel to

support personnel in problem-solving

when making related decisions regarding

performance based budgeting.

Furthermore, all personnel should have an

to see the extent to which resources affect

policy implementation consisting of:

human resources, budget resources,

information in the form of data, and other

supporting facilities. Resources are rational

factors that measure the extent to which an

organization has relevant resources for the

effectiveness of performance-based

budget implementation. If there are

resources, namely staff, and funds

Analysis of Factors Affecting the Quality

of Regional Budget Preparation (Case

Study at the Karo Regency Regional

Financial, Revenue, and Asset

Management Agency). The results of the

study that the value of the regression

coefficient of human resources is 0.375

which means that the better human

resources are in implementing and

managing regional interests, they will be

quality of regional budget preparation

because The calculated value (2,713) >the

ttable value (2,015) or the significance

value t (0.009) is smaller than the alpha <

( 0.05 ). The results of this study are in line

with research from Harahap & Syardiansah

(2021) which states that organizational

commitment has a significant effect on the

quality of APBD preparation.

(R. Yandra & E. Sutrisna, 2013)

significance value of the variable sufficient

resources was 0.692 which is greater than

the significant level of 0.05 so the

hypothesis that made rejected. The results

sufficient resources are one of the factors

that influence the preparation of

performance-based APBD. This means that

if there are enough resources available, it

will not necessarily affect the improvement

of performance-based APBD preparation

and vice versa. So sufficient resources do

not play an important role in the

preparation of performance-based APBD

within the Siak Regency Government. The

sometimes in the implementation of the

APBD, it often involves parties outside the

agency to help with limited resources.

Siak's budget, which is relatively large

when compared to other regencies/cities

in Riau Province, is more likely for the

government to cooperate with parties

outside that has the resources needed. So

sufficient resources from the internals of

Siak Regency itself have less influence on

previous research and discussion of the

influence between variables, a frame of

thinking about this article is obtained as

below.