THE ABILITY OF DAYAK CULTURE TO MODERATING THE EFFECT OF BUDGET PARTICIPATION IN BUDGETARY SLACK

Public sector budget is created to plan action that would be taken by government, how much cost that needed, and how much the outcome can be obtained from the government spending. By establishing a budgetary system which can combine performance plan with yearly budget, it will be seen the presence of relationship between available fund and the outcome expected. As main policy instrument for local government, Local Revenue and Expenditure Budget (APBD) has taken central position in an effort to develop capability and effectiveness of local government. The development of APBD of Palangka Raya city in fiscal year of 2008-2016 indicates the presence of budgetary slack. It is allegedly occurred due to several contingency factors which can affect the relationship of budget participation and budgetary slack. This research used organization culture based on local culture as moderating variable toward budget participation on budgetary slack. Respondent in this study was selected by way of proportionate random sampling. Data was collected by survey method with questionnaire and analyzed with analysis of absolute differential moderation regression test. The result of research showed that budget participation had an effect toward budgetary slack. The ability of variable of organization culture also was able to moderate the effect of budget participation on budgetary slack. KEY WORDS: Budget, participation, Dayak culture, slack.