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FORMOSA NEWS - Aceh - Participatory Budgeting Improves Aceh Government Performance, Study Finds Political Influence Limited. A 2026 study by Ria Rizki Novita and Fifi Yusmita from Syiah Kuala University reveals that participatory budgeting significantly improves the budget performance of the Aceh Government, while political intervention shows no direct impact. Published in the Journal of Finance and Business Digital (JFBD), the research highlights a critical issue in public financial management: persistent inefficiencies in regional budgeting, including low budget absorption, delayed program implementation, and high budget surpluses. The findings matter for policymakers and public administrators across Indonesia, where improving the effectiveness and accountability of government spending remains a national priority. By identifying what actually drives better budget outcomes, the study offers practical insights into how local governments can close the gap between planning and execution.
Budget Performance Challenges in Regional Governments
Budget performance is widely used as a key indicator of how effectively governments manage public funds. In Indonesia, however, many regional governments continue to struggle with mismatches between planned budgets and actual implementation.
Aceh is no exception. The province has faced recurring issues such as:
- Low realization of budget allocations.
- Delays in executing government programs.
- Consistently high levels of budget surplus (SiLPA).
These challenges suggest that improving technical planning alone may not be sufficient. Institutional and behavioral factors such as how budgets are prepared and the influence of political actors also play a role.
How the Study Was Conducted
The researchers conducted a quantitative study using survey data collected from government employees directly involved in the budgeting process at local government offices in Aceh. Respondents were selected based on their role in budget preparation and implementation. Data were gathered through structured questionnaires and analyzed using multiple linear regression. In simple terms, the study examined how two key factors participatory budgeting and political intervention affect the overall performance of government budgets.
The researchers conducted a quantitative study using survey data collected from government employees directly involved in the budgeting process at local government offices in Aceh. Respondents were selected based on their role in budget preparation and implementation. Data were gathered through structured questionnaires and analyzed using multiple linear regression. In simple terms, the study examined how two key factors participatory budgeting and political intervention affect the overall performance of government budgets.
Key Findings: Participation Drives Better Outcomes
The research delivers clear and actionable findings:
- Participatory budgeting has a strong positive effect on budget performance - Greater involvement of government staff in budget preparation leads to better planning, smoother implementation, and improved accountability.
- Political intervention has no significant direct effect - While political actors are involved in budgeting decisions, their influence does not significantly alter performance outcomes when measured in terms of efficiency, implementation, and accountability.
- Both factors are significant when combined - The interaction between participatory mechanisms and political dynamics still shapes overall budget performance, indicating that budgeting is influenced by both technical and political environments.
The statistical results reinforce the importance of participation. The participatory budgeting variable showed a strong positive coefficient and high significance level, indicating a robust relationship with improved performance.
Real-World Implications for Policy and Governance
The findings offer several practical implications for improving public financial management:
- Strengthen participatory budgeting systems - Local governments should expand the involvement of technical staff in budget preparation to improve realism and feasibility.
- Focus on technical capacity building - Training and capacity development for government employees can enhance planning accuracy and execution efficiency.
- Manage political dynamics through institutions - Rather than eliminating political influence, governments should ensure that institutional controls prevent it from distorting budget implementation.
- Reduce planning–implementation gaps - Participatory processes help ensure that budgets reflect actual needs and capabilities, reducing inefficiencies and delays.
Author Profiles
Ria Rizki Novita, S.E., M.Si. A lecturer and researcher at Syiah Kuala University specializing in public sector accounting and regional financial management.
Fifi Yusmita, S.E., M.Si. An academic at Syiah Kuala University with expertise in public budgeting, governance, and political dynamics in government finance.
Source
Pandean, R. E. D., Kalangi, L., & Mintalangi, S. S. E. (2026). Analysis of the Impact of Swallow’s Nest Tax on Local Revenue in the City of Bitung. Journal of Finance and Business Digital (JFBD), Vol. 5 No. 1, hlm. 53–72.
DOI: https://doi.org/10.55927/jfbd.v5i1.17
DOI: https://doi.org/10.55927/jfbd.v5i1.17
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