Effectiveness of Program-Based Budget Absorption and Budget Growth Rate at National Institute of Science and Technology (INCT) for the 2019-2023 Fiscal Year

Abstract

The purpose of this research is to analyze the effectiveness of program-based budget absorption and the budget growth rate of the Nacional Institute of Since and Technology (INCT) in Timor-Leste and to assist the planning and finance section of the Nacional Institute of Since and Technology as a basis for information in decision making. be a consideration for future INCT budget allocations and this research also provides empirical contributions to financial management theory and will be a reference for future investigations. This study uses the data collection techniques documentation were collected the data through the financial reports of the Nacional Institute of Since and Technology (INCT for 2019-2023. The data was processed with the descriptive method were the effectiveness of program-based budget absorption is measured using the Mardiasomo (2007:129) and budget growth rate is measured using Halim formula (2012). The results indicate that the effectiveness of program-based budget absorption at the National Institute of Science and Technology in 2019 was rated as "Quite Effective." This rating remained the same for 2020 and 2021. However, in 2022 and 2023, the effectiveness improved to "Effective," with an average effectiveness level of approximately 89.98%, classified as "Quite Effective." Regarding the budget growth rate, there was a decrease of -0.19% in 2020, followed by an increase of 0.98% in 2021. In 2022, the growth rate decreased again by -0.14%, but in 2023, it increased slightly by 0.13%. The research results show that there are achievements with good performance indicators, but there are still obstacles. There are spending programs that are partially realized and several other programs that are also not realized because the budget allocation is insufficient and the realization is not optimal so they do not reach the expected targets.