THE EFFECT OF FINANCIAL LITERATION TOWARDS BUDGETARY SLACK (Study on Legislative and Executive Members in Bengkulu Utara Regency)

Abstract

This study aims to analyze the differences and effects of financial literacy on budgetary slack between individuals who work as legislators and executives in Bengkulu Utara Regency. This research was conducted in the regional government of Bengkulu Utara Regency. Research using quantitative analysis methods. The sampling method used is non-probability sampling with purposive sampling technique. The sample is all OPD employees and DPRD members in Bengkulu Utara Regency who are involved in the Budget Agency (Banggar).The samples were head of agency, head of planning subdivision of finance subdivision in all OPD Northern Bengkulu Regency and members of the Bengkulu Utara Regency DPRD.            The results of this study are to show that the analysis model is very fit. In the results of the Independent Sample t-test Difference Test there were significant differences in financial literacy in legislative and executive members in North Bengkulu Regency, there were no significant differences in the Budgetary slack in legislative and executive members in North Bengkulu Regency. In the multiple linear regression test Financial Knowledge has a significant effect on Budgetary Slack, Financial Behavior has a significant effect on Budgetary Slack and Financial Attitude has a significant effect on Budgetary Slack on legislative and executive members in North Bengkulu Regency. From the calculation results it is known that the independent variable shows Adjusted R2 of 0.095 or 9.5%. This means that the Budgetary slack variable of employees can be explained by the Financial Literacy variable (X) 9.5%. The remaining 90.5% is explained by variables outside the model.