1Alauddin State Islamic University, Makassar, Indonesia
The budget management process in the government is a very vital aspect in the process of preparing the APBD. In the process of organizational management, the budget has an important role because it reveals what will be done in the future. Strategic thinking in each organization is a process in which management thinks about integrating activities towards the goals of the organization. The same applies to public sector organizations in Indonesia, where budgeting is an important process for determining what the government will do in the coming year and determining the revenues and expenditures expected to carry out planned programs. Therefore, Pratiwi said that regional calling has become a major concern for policy makers both by the executive and legislative institutions. Budgeting is done through a mechanism established by the government and with very long discussions. Before the budgeting process was carried out, a previous planning process had been carried out in which the Regional Government Work Plan (RKPD) became the connection between planning and budget. Basically RKPD is a resume of musrenbang (Ikhsan, 2012). Musrenbang is like a meeting place between delegations from villages and delegates from SKPD. The meeting naturally became a dialectic between delegates from each village and SKPD. The dialectics are created by the existence of various interests among the parties present at the musrenbang. The proposals submitted by each delegation are of course a requirement of interest and have unknowingly been involved in a political mechanism.
The political aspect is certainly something inherent in the public sector budgeting process in Indonesia. Budgeting in the public sector is carried out by the government together with the legislature, wherein the government and legislature cannot be separated from political institutions. (like political parties). The public is present in the budgeting process through their legislative representatives who will try to fight for their aspirations and involvement as well as executive involvement will also fight for their goals. This sometimes causes conflicting interests, and it is through political power that we know who will determine the budget. Political lobbying cannot be underestimated in the budgeting process. I gave him the term budget without loby is nothing. However, one thing that needs to be understood, is that politics is not always a negative smell. We must get out of the negative stigma associated with politics. The budgeting is basically through the stages and technical steps of planning, but it also becomes a political determination of the regional budget.
In the formal process of legislation regarding the budget mechanism has been made, but budget misuse still occurs, even the formulation process is still dominated by elite interests. The process is only interpreted as a formal process and is still far from the values of justice in the implementation of good governance (good governance). Viewed from the political aspect, the budget is political is about budgeting (Pratiwi). Budgeting is basically a matter of making various choices or priorities for doing something or not doing something (Dye, 1972). Budgeting is assumed to be choices rationally, economically and politically free. In practice, budgeting is very much related to politics, which involves bargaining between various forces that have the authority to determine which ones are important (budgeting is power and politics). The budget is a political activity, so the process and work products are political products related to who gets what, who is involved and the problems and conflicts that arise in the preparation of being able to determine the budget. According to Wildavsky and Caiden (2004) budgeting is the process by which various people or interest groups express different desires and make different decisions. To reach a decision of these different interests, they present arguments about what is right and fair, while in the government itself there is a conflict in the selection of policies in budgeting.
Considering that the funds available in a limited budget must be divided proportionally, there must be a mechanism in dividing expenditure choices in dividing this often creates a conflict of interest to be able to control the budget. If there are interest groups trying to get more programs or projects they like, then their strategy is clearly to "manage the budgeting process". This results in one interest group getting more but the other group does not. Furthermore Wildavsky and Caiden (2004) state that the purpose of budgeting is as diverse as the goals of the people involved in the making, the budget aims to coordinate different activities, complement each other, but the budget also aims for their enjoyment, for example the budget for the means used by them, by mobilizing the support of other groups. As important decisions are made, who wins, who loses, who will splash down on the sustenance (how much) and who cannot, because the implicit or explicit policy process is actually a political choice. From some of the things revealed above, an idea called budget politics emerged.
The human aspect in the budget process takes the most important part, because it is humans who make the budget and carry out the objectives of the budget. The nature of politics is basically something that is "sacred", but sometimes people who live it are full of selfishness and the desire to satisfy the desires of certain individuals or groups without thinking about the welfare of the wider community. Therefore we need a mechanism that directs humans as social beings to care for others. So that the political system returns to its essence as something sacred blessed by God Almighty.
A well-functioning political system certainly needs to be supported by the quality of its human resources who continue to learn. Likewise, public sector organizations, change always occurs so that the learning process is a necessity so that public sector organizations are able to continue to survive with changes that continue to occur. Organizations that can compete must develop a culture of learning and become a learning organization (Wirjoatmodjo, 2000). Learning organization (learningorganization)is an ongoing process within an organization that provides a smooth learning and individual development for all employees, while maintaining continuous transformation, empowerment of human resources (Santoso, 2003). Senge (1997) argueslearning organizationsthat effectiverequire skills that must be possessed by each person to build a learning organization. These skills are: personal mastery (competent), mental models (mental patterns), shared vision (the same vision), team learninglearning (team), and systems thinking (system thinking), so that learning organizations can be realized optimally. The optimal learning organization can have a positive impact on achievement. However, this paper will only focus on aspects of personal mastery to see its role in creating a conducive budgetary political environment in order to create equitable development.
The problem in budgeting is a matter of concern to various parties, ranging from the regulator, budget makers to the public. The problems that continue to arise are due to the selfishness of certain individuals or groups to fulfill their own goals. The budget becomes a unity of a political process, therefore a concept of budget politics is born. Budgetary politics cannot work without the good attitude of budget makers. Personal mastery as a concept of behavior in organizations is what is offered in this paper to create a budget political process that suits the needs of the community. Based on the background of the main problems in this study are:
OBJECTIVES OF THE RESEARCH
The objectives of this study are as follows:
Agency theory discusses the agency relationship between principals and agents. The agency relationship perspective is the basis on which to understand corporate governance and earnings management. The agency relationship is reflected between management (agents) and investors (principals). According to Jensen and Meckling (1976) agency theory is a contract between management (agent) and owner (principal). In order for this contractual relationship to run smoothly, the owner will delegate the decision making authority to the manager. Appropriate contract planning aims to align the interests of managers and owners in terms of conflict and interests, this is the core of agency theory.
Form of agency relationship according to positive accounting theory (Hendriksen and Breda, 2001: 228), there are three kinds of agency forms: 1) Between owners and management (bonus plan hypothesis) 2) Between creditors and management (debt / equity hypotesis) 3) Between the community with management (political cost hypothesis). According to Scott (2000), there are two kinds of information asymmetry, namely:
According to Zimmerman (1977) there are 3 chain of relationships: (1) upper management as agent, Voters (people) as the principal (2) department manager as principalnyaand department manager as agent. Voter (people) as the principals. Whereas Moe (1984) and Strom (2000) agency relations in public budgeting include voters, legislators, government legislators, finance ministers and budget users, bureaucrats and service provider officials. Agency theory that explains the relationship between principals and agents is rooted in economic theory, decision theory, sociology, and organizational theory. Agency theory analyzes the contractual arrangement between two or more individuals, groups or organizations. One party (principal) makes a contract, both implicitly and explicitly, with the other party (agent) in the hope that the agent will act to do the work as desired by the principals (Halim, 2006).
Budgeting is one of the functions of management, in administration, management is part of administration. In the context of public sector budgeting in this case the APBD is one of the studies in administration, especially in State administration because it is the scope of administrative science (Iva, 2013). The budget is a statement of the estimated performance to be achieved over a certain period of time expressed in financial measures (Mardiasmo, 2009). More specifically, Halim (2013: 22) defines the budget, namely the planned activities that are realized in financial form, including the proposed expenditure for an estimated period of time, as well as the proposed ways to meet these expenses. In the context of regional autonomy and decentralization, the budget occupies an important position. The process and method for preparing a budget is called budgeting. In the public sector, budgeting is a fairly complex stage and full of political overtones. Unlike the private or business sector, the budget is considered a company secret that is closed to the public, whereas in the public sector the budget is considered a public accountability tool in managing public funds and programs funded with public money so that the budget in the public sector must instead be informed to be discussed in a manner open.
Indra Bastian (2006) states that the budget is a statement of the estimated income and expenditure that occurs in one or several future periods. The budget represents the financial condition, expenditure, and objectives of public sector organizations. The function of the budget in public sector management according to Nordiawan (2006) is as follows:
The preparation of the budget is carried out through several stages, from preparation, ratification, implementation, evaluation, and reporting. According to Mardiasmo (2009), several reasons why the budget is considered very important are as follows: The
Etymologically, politics comes from the word polis (Greek) which means city-state. Lemudian derived other words such as polities (citizens), politos (citizenship or civics) and politike tehne (political expertise) and politike episteme (political science). Politics is the process of forming and sharing power in a society which, among other things, is in the form of a decision making process, especially in the state. Politics is the art and science of gaining constitutional and non-constitutional power. Politics is an effort taken by citizens to realize the common good (Aristotle's classical theory). Politics is a matter relating to the administration of government and the state. Politics is an activity that is directed to obtain and maintain power in society. Politics is everything about the process of formulating and implementing public policy. Understanding of politics above we know that politics is not something cruel, politics is not a path to the destruction of a country. However, politics is a step in developing a country's government.
Budgets cannot be separated from politics. At present a paradigm is called a political budget. Budget politics is the establishment of various policies regarding the budget process that includes various questions about how the government finances its activities; how public money is obtained, managed and distributed; who benefits and loses; what opportunities are available both for negative deviations and to improve public services. According to (Noer Fauzi & R Yando Zakaria), budget politics is a process of mutual influence among various stakeholders in determining the scale of development priorities due to the limited sources of public funds available. Budget politics is the process of influencing budget allocation policies carried out by various parties with a stake in the budget. Budget politics is the process of asserting power or political power among various parties involved in determining policy and budget allocation.
Mastery of self (personal mastery) on basically is part of the Fifth Discipline Peter Senge that form a learning organization.(Learning organizations learning organizations) are organizations where people continually expand their capacity to create the results they really want, where new patterns and expansion of thought are managed, freedom of aspiration, and learning are carried out continuously. For that Peter Senge identifies Learning organization the five pillars as follows:
Etymologically, mastery comes from English and Latin, which means mastery or expertise in the domination of something. While from the French language, it comes from the word Maitre which means someone has special expertise, competent, and expert in something. Personal mastery is the discipline of continually clarifying and deepening our personal vision, of focusing our energies, of developing patience and of seeing reality objectively (Peter Senge, 1997). Self-mastery is the development of a person whose process is continuous, always looking for ways to continue to develop, new things to learn, meet new people, is a way of life that emphasizes development and satisfaction in personal and professional life (Fran Sayers Ph.D) Self-mastery is a continuous way to clear and deepen one's vision, energy, and patience (Michael J. Marquardt) Based on some of the above understanding, it can be concluded that self-control is a learning process of one's life, not something that is already owned. Self-mastery is about loving yourself and developing the talent you have as much as possible. Some people think that self-control limits and controls oneself, but actually this is about understanding yourself. One must identify about how a habit arises to control a habit.
Type of study belongs to the study of literature or literature (Library Research) in the form of fact finding with the right interpretation. Literature study is an appearance of scientific reasoning argumentation that presents the results of the literature review and the results of the thought of the researcher regarding a problem / topic of study. Literature research is research conducted based only on written works, including research results that have been or have not been published. This paper uses article journals and other articles that are considered relevant by the author to explain the contents of this paper.
Rows of numbers in public sector budgets are born from a very complicated process. One of the stages in the budgeting process is retifation. At this stage the executive leadership must have the ability to answer and provide rational arguments for all questions and rebuttal by the legislature. it was at this stage that the political process took place. The executive leadership is required not only to have managerial skills but also to have political skills. In the field implementation, DPRD members pass the APBD draft, the process and atmosphere when passing the APBD draft, even though they have passed through the corridor of conscious or unconscious democracy adhering to an understanding referred to by Dryzek (1996) as an exclusive democracy, not inclusive, meaning that the mechanism of the formulation process through the journey almost almost sterile from political influence. However, it turns out that the public interest is neglected by the most powerless namely that they are socially, economically, politically weak, such as the elderly, children of women and the poor in general (Wahab, 2002). Johnson further (1994) found that the bureaucracy responds to the pressure exerted by the legislature in the policy and budget making process Hyde and Shafritz (1978) state that budgeting is any legislative process made by the executive in the budget process ultimately depends on the legislature because the legislature has the power to To approve or reject the budget proposal submitted by the executive. Dobell and Ulrich (2002); Jamaluddin M.et.all (2018) state that the important role of the legislature is to represent the interests of the community, empower the government, and oversee government performance. These three roles place the legislature capable of having a significant influence on government policy. According to Havens (1996) there is no requirement for the legislature to have preferences the same as the government for policies including the budget. During this time the political process led to the enactment of the APBD involving the elite (regents / mayors and DPRD). When the weak power of control from the community and the lack of moral attachment of the members of the council in each constituent, of course very detrimental to the community, this condition is further aggravated by the fact that the political structure and concern for public welfare is greatly reduced.
Sometimes in the process of determining the budget there is a conflict and political lobbying, According to Zimmerman (1977) in Moore (2000), there are a number of problems in therelationship principal-agent. First there are differences in theinterests to principal's have certain goals to be achieved and the agent also has his own desires that are different from theobjectives principal's. This problem will cause conflict. In an effort to keep the agent behaving in accordance with the wishes of principalhis, a number of control mechanisms are created which create costs called agency costs. The next problem arises if the control mechanism in monitoring the agent is not carried out then the agent will behave dysfunctional. They will use the source of their office for personal gain. Magner & Johnson (1995) explains that the parties involved in the budgeting process have a tendency to maximize their utility through allocating resources within a given budget. Whereas Garamfalvi (1997) states that politicians use influence and power to determine the allocation of resources which will then benefit them personally or in groups further politicians in this case are the members of the council can utilize its position to obtain rents or benefits, especially economic benefits, political manipulation of public policies has caused ineffective and inefficient allocation of resources in the budget.
Seeing the explanation above, the budgeting process involves a rent budget to a dirty process. Where the possibility of political lobbying that only benefits a handful of people is very large. Basically holy politics can be despicable because people who have political power have a very high egoistic nature so that it only benefits their own interests without thinking of others. The politics that were originally used to develop a country / region may turn out to be a step to gradually destroy development if the people in politics are filled with lust for the world. Therefore paying attention to the human aspects in the budgeting process is very important.
Issues of interest as described above must be immediately stopped. One way to overcome this problem is by self-control (personal maserymakers) from politicians or from the budget. Self-mastery in my opinion is very important in the preparation of a budget. Without self-control, the budget will not reflect the goals of public sector organizations. As we know that the purpose of the public sector is to provide prosperity for the whole community. Therefore the budget must be fair. Self-control or personal mastery is expected to be able to guide the parties involved in the budgeting process to be more concerned with the welfare of the community. Here are some benefits for someone who has a personal mastery are as follows:
Aspects Personal mastery basically have many aspects, including spiritual, mental, emotional and physical aspects. Below I will connect the aspects of personal mastery with the budget process.
with personal mastery a goodis expected to giving understanding to the budget drafter to always maintain their physical condition. Because without a good physical condition, certainly the performance in preparing a budget will not go well.
Based on these aspects of course this is able to support the budgeting process. Because a good mental state of a person will certainly produce good thoughts as well.
Emotional attitude in budgeting is certainly something that needs attention. The lengthy process of budgeting sometimes makes the emotions of the constituents out of control, with this personal mastery expected to reduce their emotions so they don't explode.
Spiritual factors become inseparable aspects from Personal Mastery. This is because the spiritual can be a strong enough basis for one's belief in doing something. Spirital aspects consist of:
Relating to the inner self
Appreciate life, love others
Unite in difference with others
Creating a better world for a place to live
For me without the spiritual aspects in a person, it is useless what they do. There is no more sincerity, patience and sincerity in serving the community. Therefore, it is expected that budget makers have a spiritual attitude in themselves, so that the budget preparation process will run according to organizational goals, and personal mastery is a solution to improve the spirituality of the budget makers and other parties involved.
Based on the above, personal mastery has a role for budget politics to be able to run by paying attention to the principle of justice. Budget politics, which has been considered a political lobby to satisfy the desires of certain elements, is expected through the role of the personal mastery , the process of budget politics returns to the proper corridor, which is a pro budget to the public.
B. The realization of social justice through budget politics
Politics can be interpreted as a process of budget allocation based on political will and process, both carried out by individuals and groups. It is inevitable that the use of public funds will be determined by political interests. Irene S. Rubin in The Politics of Public Budgeting (2000) said, in determining the amount and allocation of funds for the people there are always political interests that are accommodated by officials. That budget allocations often also reflect the interests of policy makers in relation to their constituents. The politics of the budget must be controlled by the objectives to be achieved (policy driven). In other words there must be a link between the budget and the policy direction as set out in the RPJMD and RKPD. Budget politics must be a tool to achieve regional development goals. The consequence of budget politics is that the government is encouraged to make fundamental changes at the bureaucratic level. All regional work units (SKPD) need to be encouraged to increase revenue and implement efficiency and effectiveness of expenditure. In this context, total bureaucratic reform needs to be implemented immediately. When the government contains bureaucrats who have not been touched by reforms, and parliaments that do not offer enough aspirations for changes in the patterns and substance of budget politics that do not benefit the people, a serious reflection is needed among community groups, academics and pro-transparency and budget accountability activists in the regions. If the budgeting cycle and mechanism for preparing the Regional Budget have proven to have failed to create social justice that is more just as a political goal of citizens, then alternative political budgetary budgets must be chosen that are based on social movements that are still outside the established regional political system.
According to Sirait, M. in Merdeka.com (2014), budget politics is applied to limit the regional budget that is used according to their needs. Because, he considers if an area has a budget that is not well absorbed then it can have an impact on the economic, social and cultural pace of local residents. As a result, regional development can be hampered. But for me, budget politics is able to feed a budget that is able to meet the expectations of the community in terms of development. Politics The budget shows the role of government in regulating the expenditure of state finances as an obligation in creating public welfare. If the state finances are managed well based on the right principles, systems and structures, then this can create equitable regional development. However, if financial management with budget politics is not based on existing provisions, this can trigger divisions in the regions that can cause national disintegration. Based on this, budget politics is a good mechanism to be carried out to support regional development which in the end is expected to increase social welfare.
The process of preparing a budget is not easy. Starting from the planning process to the conflict that sometimes arises in the process due to various interests. The political process in budgeting cannot be avoided, therefore it is now known as budget politics. Budget politics is a good thing but it can also become a boomerang that will support regional development. Good or bad the budget political process depends on the human beings who compile the budget. Good self-control is one of the best ways to build a good budget political system. So, it is very clear the role of personal mastery in the budget political process that has the principle of justice. The budget political process that runs in accordance with the corridor whose semis will certainly have implications for regional development and in the end will create social welfare.
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