Published: 12 Mar 2020.
Open Access
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One key to effective and efficient governance is good budget management. The agency
relationship between the executive and the legislature in the preparation and determination of
the Regional Revenue and Expenditure Budget will provide a pattern for the smooth mechanism
of government administration in the region. The purpose of this study is to describe the pattern
of institutional relations and what are the basis for executive and legislative considerations in
the process of preparing and determining the 2017-2018 Surakarta City Budget. The research
method used is a qualitative research method. Research instruments with interviews and
documentary studies conducted on certain sources.
Based on the results found in the field research, it is explained that the planning process
in Surakarta City is not only a mere formality. The government as the executive and the
Surakarta City DPRD Budget Board as the legislature are not only interested in the budget
discussion stage, which is often considered to be a "wetland". Budgeting phase is more about
the cost calculation. Between the legislature and the executive have a hrmonistic relationship
so that they collaborate to create a budget that is right on target and transparent. This can be
seen by obtaining a Fair Opinion without Exception (WTP) opinion by the City of Surakarta.
So that the accuracy of the target, timeliness of budgeting, and transparency of the budget has
a positive impact in every budget planned by the executive approved by the legislature.
Therefore, the problems that arise in executive institutions that usually carry out
opportunistic behavior over the superiority of their information and legislative bodies that
often use their power do not make them take advantage of this position against the Surakarta
City Regional Budget. This is because the executive and legislative relationship is not marked
by the superiority or dominance of one of the forces.
Keywords: Agency, Rational Choice, Regional Budget

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