Analysis of the Influence of Budget Planning and Human Resource Quality on Budget Absorption: An Empirical Study at The Coordinating Ministry for Economic Affairs of The Republic of Indonesia

The study was conducted with the aim of knowing the effect of budget planning factors and the quality of human resources on budget absorption within the Coordinating Ministry for Economic Affairs. This research is important because the absorption of the State Budget (APBN) is the main indicator to determine whether the efficiency of state financial management is good or bad. Therefore, the factors that influence it need to be studied more deeply. The population and sample of the study were employees of the Coordinating Ministry for Economic Affairs who handled budget management in both main and additional assignments. Primary data sources were obtained by distributing questionnaires and secondary data were obtained from literature studies on books, journals, and government regulations. The data analysis technique used multiple linear regression analysis with SPSS ver 23 software. The results of the study showed that budget planning had a significant positive effect but the quality of human resources had an insignificant positive effect on budget absorption. In addition, both variables simultaneously affect budget absorption within the Coordinating Ministry for Economic Affairs.