This research accounts for the effect of budgetary participation andmanagerial role of local finance organizer on local organizationperformance at General Hospital District of Malang Regency. Thehypothesis of this research is that whether budgetary participation andthe managerial role of the local finance organizer positively affect onthe local government performance. The number of respondents as theresearch samples is 76 selected by using random sampling methods.The data collected by distributing questioners, there were 76respondents giving back and only 76 questioners that could beprocessed and analyzed. The result of the research shows thatbudgetary participation and managerial role of local finance organizersaffect positively significant on the organizational performance. Theresult of this research supports the previous researches and it is basedon agency theory and prospect theory.