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Restoration of Budget Control: How It Should Be? A Case Study of the Local Government of Indonesia

Author

Listed:
  • Ratna Ayu Damayanti

    (Faculty of Economics and Business University of Hasanuddin, Indonesia Author-2-Name: Author-2-Workplace-Name: Author-3-Name: Author-3-Workplace-Name: Author-4-Name: Author-4-Workplace-Name: Author-5-Name: Author-5-Workplace-Name: Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:)

Abstract

Objective - This research aim is to examine the phenomenon of budget control and deviant behavior in order to answer the question: "how should budget control in the government sector be in order to effectively prevent deviant behavior such as budgetary slack?" The study focuses on local governments in Indonesia, where such controls have not been able to combat budgetary slack, which has led to widespread corruption. Methodology/Technique - This study uses the Habermas method to criticize budgetary control practices that continue in the present day. Findings - By creating a public space over localized wisdom-based control, known as an informal control system, the weakness of formal control systems in overcoming budgetary slack with be reduced. Novelty - This study takes a critical approach, while most previous studies have adopted a positivistic approach or an interpretative study.

Suggested Citation

  • Ratna Ayu Damayanti, 2018. "Restoration of Budget Control: How It Should Be? A Case Study of the Local Government of Indonesia," GATR Journals afr161, Global Academy of Training and Research (GATR) Enterprise.
    • Handle: RePEc:gtr:gatrjs:afr161
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    References listed on IDEAS

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    1. Moataz Elmassri & Elaine Harris, 2011. "Rethinking budgetary slack as budget risk management," Journal of Applied Accounting Research, Emerald Group Publishing Limited, vol. 12(3), pages 278-293, November.
    2. Marginson, David & Ogden, Stuart, 2005. "Coping with ambiguity through the budget: the positive effects of budgetary targets on managers' budgeting behaviours," Accounting, Organizations and Society, Elsevier, vol. 30(5), pages 435-456, July.
    3. Van der Stede, Wim A., 2000. "The relationship between two consequences of budgetary controls: budgetary slack creation and managerial short-term orientation," Accounting, Organizations and Society, Elsevier, vol. 25(6), pages 609-622, August.
    4. Davila, Tony & Wouters, Marc, 2005. "Managing budget emphasis through the explicit design of conditional budgetary slack," Accounting, Organizations and Society, Elsevier, vol. 30(7-8), pages 587-608.
    5. Hofstede, Geert, 1981. "Management control of public and not-for-profit activities," Accounting, Organizations and Society, Elsevier, vol. 6(3), pages 193-211, July.
    6. Tor Busch & Ove Gustafsson, 2002. "Slack in the Public Sector: A comparative analysis of a private and a public enterprise for refuse collection," Public Management Review, Taylor & Francis Journals, vol. 4(2), pages 167-186, January.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Budget; Budget Control; Budgetary Slack; Local Wisdom; Public Sector; Indonesia.;
    All these keywords.

    JEL classification:

    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • M19 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Other

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