Performance-Based Budgeting Strengthens Accountability, but Deli Serdang Still Faces Governance Challenges
The implementation of performance-based budgeting has helped improve accountability and transparency in the Deli Serdang Regency Government, but its effectiveness remains moderate due to limitations in human resources, data quality, information systems, and regulatory compliance. That is the main conclusion of a study conducted by Monica Aprilia, Shella Yulia Riska, and Renny Maisyarah from the Accounting Study Program, Panca Budi Development University, Medan. Published in 2026 in the International Journal of Contemporary Sciences (IJCS), the research offers important insights into how local governments can strengthen public financial governance by focusing not only on budget allocation but also on measurable public outcomes.
Performance-Based Budgeting Becomes a Key Pillar of Good Governance
As Indonesia continues to reform its public financial management system, local governments are expected to adopt budgeting practices that emphasize measurable performance rather than simply spending allocated funds. Performance-based budgeting links every government program to clear outputs and outcomes, enabling public spending to generate tangible benefits for citizens.
For regional governments, this approach is increasingly important because communities demand greater transparency and accountability in how public money is managed. Deli Serdang Regency, one of the strategic regions in North Sumatra, has implemented this budgeting model, yet practical challenges remain despite an established regulatory framework.
According to the researchers, successful implementation depends not only on regulations but also on institutional readiness, competent personnel, reliable performance data, and effective monitoring systems.
How the Study Was Conducted
The researchers adopted a descriptive qualitative approach using secondary data collected from regional financial reports, Government Agency Performance Accountability Reports (LKjIP), official regulations, and previous academic studies covering the 2018–2024 period.
Rather than conducting surveys or experiments, the study examined how budgeting practices were implemented across government agencies involved in financial planning, execution, and reporting within Deli Serdang Regency. The analysis focused on three main components of performance-based budgeting:
- Budget planning
- Budget implementation
- Performance reporting
The researchers also evaluated two governance outcomes:
- Public accountability
- Financial transparency
Supporting factors such as human resource capacity, information systems, and regulatory compliance were also examined to understand their influence on implementation.
Key Findings
The study concludes that performance-based budgeting has been implemented but has not yet reached an optimal level.
Using the Three Box Method, all major variables—including budgeting, accountability, and transparency—were categorized as medium, indicating meaningful progress but significant room for improvement.
The researchers identified several important findings:
- Planning has adopted performance indicators, but many indicators are still administrative rather than outcome-oriented, making it difficult to measure the real impact of government programs.
- Budget implementation remains inconsistent with initial plans. Differences between planned activities and budget realization suggest that internal control mechanisms require strengthening.
- Performance reporting is conducted regularly, yet reports still emphasize budget realization instead of demonstrating the actual results and public benefits generated by government programs.
- Accountability follows existing regulations, but evaluation mechanisms remain limited because of insufficient data quality and limited human resource capacity.
- Transparency has improved, with financial information becoming increasingly available, although much of the information is still not fully accessible or easily understood by the public.
Overall, the findings indicate that performance-based budgeting has positively influenced accountability and transparency, but its full potential has yet to be realized.
Why Human Resources and Information Systems Matter
One of the most significant conclusions from the research is that regulations alone cannot guarantee good governance.
The study shows that several supporting factors strongly influence the success of performance-based budgeting, including:
- Competency of government officials
- Quality of regional financial data
- Integration of information systems
- Consistency in regulatory compliance
- Effectiveness of monitoring and evaluation
Weaknesses in these areas reduce the government's ability to connect planning, implementation, and reporting into a fully integrated performance management system. As a result, accountability often remains administrative instead of demonstrating measurable public outcomes.
Implications for Local Government
The findings provide practical recommendations for local governments across Indonesia that are implementing performance-based budgeting.
The researchers recommend strengthening staff capacity through continuous training, particularly in developing outcome-based performance indicators and managing performance data. They also encourage governments to modernize regional financial information systems so that planning, implementation, and reporting become more integrated and accurate.
Another priority is improving public transparency by publishing financial and performance information in formats that are easier for citizens to access and understand. Digital technology, clearer performance reports, and stronger evaluation systems can help increase public trust while supporting better decision-making within government institutions.
Beyond Deli Serdang Regency, these findings are relevant for other regional governments seeking to strengthen public financial governance. As demands for transparency continue to grow, performance-based budgeting can become a more effective governance tool when supported by competent personnel, reliable information systems, and continuous institutional improvement.
Research Insight from the Authors
Monica Aprilia, Shella Yulia Riska, and Renny Maisyarah of Panca Budi Development University, Medan conclude that performance-based budgeting has contributed to improving accountability and transparency in the Deli Serdang Regency Government. However, they emphasize that stronger human resource capacity, integrated information systems, improved monitoring, and better performance evaluation are essential for achieving higher-quality public financial governance.
Author Profiles
- Monica Aprilia is a researcher in the Accounting Study Program, Panca Budi Development University, Medan, with research interests in public sector accounting, regional financial management, and government budgeting.
- Shella Yulia Riska is a researcher at the Accounting Study Program, Panca Budi Development University, Medan, whose work focuses on public accountability, financial governance, and government accounting.
- Renny Maisyarah is a researcher from the Accounting Study Program, Panca Budi Development University, Medan, specializing in regional finance, accounting systems, and public sector governance. The published article does not specify the academic degrees of the authors.
Source
- Article Title: Analysis of the Implementation of Performance-Based Budgeting in Improving Accountability and Transparency in the Government of Deli Serdang Regency
- Authors: Monica Aprilia, Shella Yulia Riska, and Renny Maisyarah
- Journal: International Journal of Contemporary Sciences (IJCS)
- Publication Year: 2026
- Volume & Issue: Vol. 4, No. 5, pp. 1497–1506
- DOI: https://doi.org/10.55927/epqm4t42
- URL Jurnal: https://journalijcs.my.id/index.php/ijcs
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