The Effect of Budget Participation Relationship and Organizational Mechanization On Regional Tax Performance Mediated by The Budget Slack in Indonesia

currently, research on optimizing regional fiscal performance is fundamental.This research is intended to determine the direct and indirect effects of obstacles to optimizing local tax performance based on budget participation and organizational mechanization on local tax performance in Indonesia, with Budget Slack as the mediating variable.The research was conducted in 120 local tax collection organizations in provincial and district/city governments in Indonesia, with echelon 2 and 3 officials, both women and men, as respondents.Design/Methodology/approach, researchers quoted data through questionnaires sent to all 120 regional tax collection organizations in provinces, districts, and cities in Indonesia.Data were obtained from the answers to the questionnaire, which were then processed using structural equation model (SEM) data analysis techniques with the AMOS application.The results of this study can be concluded that there is a relationship between local tax performance and budgetary participation, organizational mechanization, and budgetary slack mediating the relationship between the two on regional tax performance.Furthermore, its effect on Regional Tax Performance is 0.346 or 34.6%.The magnitude of the influence of Organizational Mechanisms on Budgetary Slack is 0.351 or 35.1%, and the effect on Regional Tax Performance is 0.326 or 32.6%.The magnitude of the influence of the Budget slack on Regional Tax Performance is 0.589 or 58.9%.This study recommends improving organizational mechanization and budget participation mechanisms to optimize performance.