An evaluation of the influence of budgeting process on budget performance in Malaysia

Purpose - The purpose of this paper is to evaluate the influence of budgeting process elements (budget participation, preparation, implementation and evaluation) on budget performance of government. Design/methodology/approach - A cross-sectional survey was administered among budget officers from government agencies, departments, and units in Malaysia. Descriptive and regression analyses were used to examine the relationship between the budgeting process and budget performance. Findings - The findings revealed the significant influence of the two predictors: (1) budget participation and (2) budget implementation and evaluation, on budget performance. Both have positive and significant impacts on budget performance. However, budget preparation appeared to have no significant relationship with budget performance, although there is positive effect. Originality/value - This study provides empirical evidence on the budgeting process factors that influence budget performance. The findings hopefully are of interest to government officials, especially frontline bureaucrats, who seek to ensure that budget performance meets expectations in Malaysia and other countries.