Budget participation, information asymmetry, and job insecurity as a predictor of budgetary slack

Budgetary slack occurs because of the potential difference with the revenue budget target. the difference in potential revenue with the revenue budget target indicates the occurrence of individual behavior lowering the income target to facilitate the achievement of the government budget. The purpose of this study is to empirically prove the effect of budget participation, information asymmetry, and job insecurity that trigger budgetary slack. The population of this research is officials of the Indonesian: Regional Working Unit in the province of East Java, Indonesia. The sampling technique used is proportional sampling, the research respondents were 84 people. The results show that budget participation, information asymmetry, and job insecurity have a positive effect on budgetary slack. The high budget participation of public sector employees can trigger budgetary slack. Information asymmetry motivates budget implementers to take action to reduce revenue targets and increase government spending. High job insecurity in the work environment creates pressure on employees so that budgetary slack is created.

Task-based budget as a method of local government financial management

The aim of this article is to present task-based budgeting as a new method of public finance management: from the central budget to the budgets of the lowest level. Particular attention was paid to the aims and objectives of the budget, as well as to its performance indicators. The publication is theoretical in nature and deals with the analysis of targeted budgeting with regard to public finance, especially in the context of the central government budget.

Politically Connected Firms and Their Stock Return Volatility during High-Visibility Events: Evidence from Malaysia

This study investigates the relationship between political connection and firm stock volatility. We examine whether stock return volatility of politically connected firms differ from non-connected firms during four events. These four events are general election, change of leadership, announcement of government budget, and announcement of policies by the government. This paper uses a volatility event study technique to calculate the abnormal stock return volatility during the four events. We use the data of public-listed firms in Malaysia from 2002 to 2013. The result shows that political connection is associated with higher stock volatility in certain events. They appear to be the most volatile in the event of general election and least volatile during budget announcement. Besides budget announcement, the other three events showed a stronger volatility as they are considered as more of a surprise announcement rather than scheduled announcement. The paper adds to a limited body of literature investigating the relationship between political connection and market behavior in Malaysia and hopes to show that political connection can impact the stock return volatility of firms during high-visibility events in Malaysia.

Kebijakan Keuangan Dan Siklus Pelaksanaan Anggaran Belanja Pemerintah Daerah Untuk Penanganan Pandemi Covid-19

Kondisi darurat yang diakibatkan oleh pandemi Covid-19 menuntut perlunya respon pemerintah, baik aspek kebijakan keuangan maupun pelaksanaannya secara cepat. Penelitian ini bertujuan untuk mengidentifikasi penerapan kebijakan keuangan dalam penanganan Covid-19 dan melakukan tinjauan terhadap siklus pelaksanaan anggaran belanja Pemerintah Daerah Kabupaten “ABC” untuk penanganan pandemi Covid-19. Pengumpulan data dilakukan melalui studi kepustakaan dan metode studi lapangan berupa wawancara serta observasi dalam pengumpulan data pada Badan Keuangan Daerah Kabupaten “ABC” untuk kemudian diolah dan dianalisis secara kualitatif dengan metode interaktif. Hasil penelitian menunjukkan bahwa kebijakan keuangan Pemerintah Daerah Kabupaten “ABC” terhadap pandemi Covid-19 terdiri atas percepatan refocusing/realokasi anggaran, dan rasionalisasi anggaran pendapatan, serta optimalisasi penggunaan belanja tidak terduga yang dianggarkan terpusat pada SKPKD. Rangkaian aktivitas yang dilakukan dalam siklus pelaksanaan anggarannya melibatkan PPKD dan pengelola kegiatan dan/atau keuangan pada SKPD yang terkait dengan penangan Covid-19. Tahapan dalam siklus hampir sama dengan proses belanja non penanganan Covid-19, tetapi berbeda dalam hal penyiapan penyesuaian dokumen pelaksanaan, dan percepatan dalam pencairan dana. Hasil penelitian dapat menjadi pembelajaran dalam mengantisipasi keadaan yang mendesak/darurat. The emergency conditions caused by the Covid-19 pandemic require the government to respond, both in terms of financial policy and its implementation quickly. This study aims to identify the application of financial policies in handling Covid-19 and to review the implementation cycle of the "ABC" Regency Regional Government budget for handling the Covid-19 pandemic. Data collection was carried out through literature study and field study methods in the form of interviews and observations in data collection at the "ABC" Regency Regional Finance Agency to then be processed and analyzed qualitatively with interactive methods. The results showed that the "ABC" District Government's financial policy towards the Covid-19 pandemic consisted of accelerating budget refocusing/reallocation, and rationalizing the revenue budget, as well as optimizing the use of unexpected expenditures that were budgeted centered on SKPKD. The series of activities carried out in the budget implementation cycle involve PPKD and activity and/or financial managers at SKPD related to Covid-19 handling. The stages in the cycle are almost the same as the non-Covid-19 spending process, but differ in terms of preparing the adjustment of implementation documents, and in accelerating the disbursement of funds. The results of the research can be a lesson in anticipating urgent/emergency situations.

Evaluating the budget's distributive influence on household incomes

<p>Many budget measures have been introduced by governments with the stated aim of transferring resources to particular groups - in general, the groups which are seen to receive lower incomes. An evaluative method is required to assess the extent to which resources are actually redistributed to households by the budget. This thesis suggests a taxonomy for assessing whether a measure of household income that takes account of central government budget activities is distributed differently from household earnings (market income). The taxonomy for evaluating the budget's distributive influence has four stages. Each stage progresses from observable household market income data to a more comprehensive income measure. Stage One is basically an accounting concept. Household market income is compared with an income measure which takes account of those central government budget transactions which have an obvious or direct effect on the sources and uses of household income. Stage Two is similar to studies of the influence of the budget on income distribution, such as those by Gillespie and Musgrave, which are referred to as quantitative studies. Quantitative studies are not based on structured models of economic activity, but use the results of other incidence analysis to approximate the economic effects of budget receipts and expenditures on household incomes. Stages Three and Four require structured general equilibrium models to take consistent account of the behavioural relationships important to the analysis of the economic effects of the budget by household income. The Harberger-Mieskowki-McLure (HMM) two-sector general equilibrium models specify both factor and product price changes, incorporating theories about the short-run macroeconomic effects of budget measures. Conclusions about budget incidence based on the HMM approach, however, relate to aggregate factor (capital and labour) income. Multi-sector models pioneered by Shoven, Whalley and Fullerton focus on the analysis of tax incidence by household income groups. Given the current state of the art, it is not possible to analyse the distributional effects of the entire budget on household income distribution using general equilibrium models. This thesis provides a clearer definition of some of the issues involved. A quantitative study of the money-income effects of the 1981/82 government budget is carried out as part of this thesis. The government budget is defined as the national income account of the central government's current income and outlays. Work by the New Zealand Department of Statistics based on a tax modelling system called ASSET provides the foundation for manipulating the massive data requirements of this thesis topic. The results are expressed by 10 household income groups (deciles) and 10 household types and represents the entire population residing in private dwellings. A major contribution of this thesis is that it analyses the distribution of government expenditures by household income and household type. It is found that the 1981/82 budget does redistribute money-income from households in the higher income groups to those in the lower-income groups. The personal income tax is shown to be the most important redistributive force, based on the assumption that households' actual tax payments are the same as their statutory liability for the tax. The household types which are estimated to receive the greatest net benefit from the 1981/82 central government non-market budget are one-adult and two-adult national-superannuitant household. According to the results, government expenditures tend, on average, to be consumed in greater proportion by childless household than by households with children. Comparison of the results using the Stage One and Stage Two approaches, as well as a rough approximation of a Stage Three initial income base, suggests that the more theoretically comprehensive the evaluative approach, the less redistributive is the budget. Piggott (1980b) has shown that a feature of the SWF general equilibrium models that makes them attractive for policymakers interested in social policy is that the model can be used to evaluate both the distributional and efficiency consequences of a budget change in terms of household incomes. This, and the above comparison, are powerful arguments in favour of further development of SWF models so that the incidence of the budget can be assessed in a theoretically-consistent fashion.</p>

Evaluating the budget's distributive influence on household incomes

<p>Many budget measures have been introduced by governments with the stated aim of transferring resources to particular groups - in general, the groups which are seen to receive lower incomes. An evaluative method is required to assess the extent to which resources are actually redistributed to households by the budget. This thesis suggests a taxonomy for assessing whether a measure of household income that takes account of central government budget activities is distributed differently from household earnings (market income). The taxonomy for evaluating the budget's distributive influence has four stages. Each stage progresses from observable household market income data to a more comprehensive income measure. Stage One is basically an accounting concept. Household market income is compared with an income measure which takes account of those central government budget transactions which have an obvious or direct effect on the sources and uses of household income. Stage Two is similar to studies of the influence of the budget on income distribution, such as those by Gillespie and Musgrave, which are referred to as quantitative studies. Quantitative studies are not based on structured models of economic activity, but use the results of other incidence analysis to approximate the economic effects of budget receipts and expenditures on household incomes. Stages Three and Four require structured general equilibrium models to take consistent account of the behavioural relationships important to the analysis of the economic effects of the budget by household income. The Harberger-Mieskowki-McLure (HMM) two-sector general equilibrium models specify both factor and product price changes, incorporating theories about the short-run macroeconomic effects of budget measures. Conclusions about budget incidence based on the HMM approach, however, relate to aggregate factor (capital and labour) income. Multi-sector models pioneered by Shoven, Whalley and Fullerton focus on the analysis of tax incidence by household income groups. Given the current state of the art, it is not possible to analyse the distributional effects of the entire budget on household income distribution using general equilibrium models. This thesis provides a clearer definition of some of the issues involved. A quantitative study of the money-income effects of the 1981/82 government budget is carried out as part of this thesis. The government budget is defined as the national income account of the central government's current income and outlays. Work by the New Zealand Department of Statistics based on a tax modelling system called ASSET provides the foundation for manipulating the massive data requirements of this thesis topic. The results are expressed by 10 household income groups (deciles) and 10 household types and represents the entire population residing in private dwellings. A major contribution of this thesis is that it analyses the distribution of government expenditures by household income and household type. It is found that the 1981/82 budget does redistribute money-income from households in the higher income groups to those in the lower-income groups. The personal income tax is shown to be the most important redistributive force, based on the assumption that households' actual tax payments are the same as their statutory liability for the tax. The household types which are estimated to receive the greatest net benefit from the 1981/82 central government non-market budget are one-adult and two-adult national-superannuitant household. According to the results, government expenditures tend, on average, to be consumed in greater proportion by childless household than by households with children. Comparison of the results using the Stage One and Stage Two approaches, as well as a rough approximation of a Stage Three initial income base, suggests that the more theoretically comprehensive the evaluative approach, the less redistributive is the budget. Piggott (1980b) has shown that a feature of the SWF general equilibrium models that makes them attractive for policymakers interested in social policy is that the model can be used to evaluate both the distributional and efficiency consequences of a budget change in terms of household incomes. This, and the above comparison, are powerful arguments in favour of further development of SWF models so that the incidence of the budget can be assessed in a theoretically-consistent fashion.</p>