The Effect of Budget Constraints, Internal Control and Financial Technology on Budget Performance at the Ministry of Finance through Financial Behavior as an Intervening Variable
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Effective management of Indonesia's State Revenue and Expenditure Budget (Anggaran Pendapatan dan Belanja Negara, APBN) requires systematic performance measurement and evaluation to ensure that allocated funds are utilized efficiently and achieve their intended objectives. However, budget implementation faces various challenges, including budget constraints, which may influence the financial behavior of government financial managers and ultimately affect budget performance. The Ministry of Finance has consistently received favorable budget performance assessments in recent years, making it a relevant setting for examining the factors influencing budget performance. This study aimed to analyze the effects of budget constraints, internal control, and financial technology on budget performance at the Ministry of Finance, with financial behavior as a mediating variable. A descriptive quantitative approach was employed, using primary data collected from 210 employees involved in financial management. The data were analyzed using partial least squares structural equation modeling (PLS-SEM). The findings indicated that budget constraints, internal control, and financial technology had positive and significant effects on financial behavior. Budget constraints negatively affected budget performance, whereas internal control and financial technology had positive effects. Furthermore, financial behavior positively influenced budget performance and mediated the relationships between budget constraints, internal control, and financial technology and budget performance. These findings highlighted the importance of effective internal controls, financial technology adoption, and sound financial behavior in improving budget performance.
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