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The Effect of Budget Variances on the Local Government Budget Changes with Legislature Size as Moderator

Author

Listed:
  • Afrah Junita
  • Erlina
  • Erwin Abubakar
  • Syukriy Abdullah

Abstract

This research was examined the effect of budget variances on local budget changes using legislature size as moderator. Conceptually, rebudgeting is not different from the initial budget, but at the lower public participation. Previous research found that changes in the budget (PAB) were affected by variances of revenues and expenditures of the previous year budget. The results of this research showed that the revenue variance positively affected PAB, while expenditure variance had no effect. When legislature size (LS) used as moderator, the effect of the revenue variance was stronger on PAB with negative direction, but expenditure variance still has no effect on PAB although it had been moderated by LS.

Suggested Citation

  • Afrah Junita & Erlina & Erwin Abubakar & Syukriy Abdullah, 2018. "The Effect of Budget Variances on the Local Government Budget Changes with Legislature Size as Moderator," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 4(1), pages 162-173, March.
    • Handle: RePEc:khe:scajes:v:4:y:2018:i:1:p:162-173
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    More about this item

    Keywords

    Budget changes; rebudgeting; legislature size; budget variances; local budget;
    All these keywords.

    JEL classification:

    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation
    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures

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