The influence of budget transparency and accountability on regional financial management performance

Abstract

Background: Budget transparency and accountability play a crucial role in realizing clean and ethical governance and in strengthening public trust in the government. However, several obstacles remain in their implementation, including suboptimal transparency of information regarding local finances and the quality of financial reporting, which still requires further improvement. Objective: The objective of this study is to analyze the relationship between municipal financial management performance and budget transparency and accountability. Sample: Thirty-three employees of the Baubau City Regional Revenue Office served as the sample for this study. Method: The researchers used a quantitative method in this study and collected data from the participants by asking them to complete a questionnaire. Results: The study shows that budget transparency significantly improves regional financial management performance, as reflected by a significance value of 0.003 < 0.05. Similarly, a significance value of 0.000 < 0.05 indicates that budget accountability significantly improves the performance of local financial management. Conclusion: Based on these findings, improvements in the performance of local financial management are positively and significantly influenced by budget transparency and accountability.