Factors affecting rebudgeting in local government: From organizational feature to political variables

This study aims to examine the determining factors of rebudgeting in Indonesia local government. Incrementalism degree, political variables, organizational feature, local government financial condition, and local socioeconomic environment are tested as the factor for Indonesia local government rebudgeting for period of 2010-2014. Using panel regression approach, the findings show that internal factors as well as external factor do affect rebudgeting in various ways. Degree of incrementalism has negative effect; political variable has positive effect during election years, but has negative effect according to regent/mayor gender; organizational feature and local government financial condition have negative effect for current surplus. Meanwhile, financial autonomy and net borrowing has positive effect for accumulated surplus; and lastly, local socioeconomic environment has negative effect on rebudgeting.