The Effectivness Analysis of State Expenditure Policy Implementation in Indonesia

Abstract

The deficient absorption of government budget has become a problem that continuously occurred every year. It impacted on the delayed implementation and realization of activity programs that have been planned by the government in institution of ministry. The government has made several rules in state finances including its derivatives in order to encourage better budget absorption. The purpose of this study was to verify the effectiveness of budget absorption in KPPN Garut, West Java. This study used a qualitative method with case study approach theory by Van Horn and Van Meter. There are six measured variables in order to determine the effectiveness of budget absorption. The variables are standards and objectives, policy resources, and activities between organizations and executive activities, specifications of administrative, economic, social, political parts and enforcement trends. The result of this study showed that based on six variables mentioned above, the budget absorption in KPPN Garut has not been effective.

Corporate governance and financial performance of state-owned enterprises in Kenya

“…This study uses the capital budget realization ratio (CBRR) as a financial performance measure (dependent variable), which is consistent with prior studies (Predonu and Gherman, 2013; Tosun, 2014; Akbar et al , 2019; Rakhman, 2019). Previous studies have focused on a range of financial measures such as ROE (Arora and Sharma, 2016; Assenga et al , 2018; Gupta et al , 2019) and Tobin’s Q (Ghazali, 2010; Abdallah and Ismail, 2017; Bhat et al , 2018).…”

“…Capital budget realization is usually reported on an annual basis by SOEs that applies International Public Sector Accounting Standards (IPSAS) accrual basis of accounting and make their approved budget (s) publicly available through audited annual financial reports as per the recommendation of IPSAS 24; Presentation of budget information in financial statements (Grandis and Mattei, 2014). The realization ratio indicates the efficiency level of the public entity in achieving the social welfare objective (Tosun, 2014; Akbar et al , 2019; Rakhman, 2019). While some SOEs and empirical literature (Rakhman, 2019) make the argument that under realization of the capital budget fund is as a result of the delay of the release of funds from the Exchequer, statistics of CBRR exhibit variations that must be explained by other factors other than government delay in releasing of funds, as the funds are released to the SOEs at the same time.…”