Enhancing Budget Performance Through Value for Money: A Pathway to Sustainable Development Goals

Makassar, Indonesia Desember 18 2024/ CORGOV/-In the realm of public administration, efficient budget management is crucial for the success of government duties toward society. A recent study titled “Does the concept of value for money increase budget performance?” published in the journal Public and Municipal Finance by Siti Nur Reskiyawati Said and colleagues (LLC “Consulting Publishing Company “Business Perspectives,” December 18, 2024) sheds light on how value for money can significantly enhance budget performance in local governments.

The study surveyed 153 government officials from Makassar City, Indonesia, to understand the factors that impact budget performance. The findings reveal that participatory budgeting—where government officials and stakeholders actively engage in budget planning—budget goal clarity, and organizational commitment all positively influence how well budgets are managed and utilized. Moreover, the study highlights the important roles of organizational culture and motivation as factors that strengthen these relationships.

Why does this matter to the public? Efficient budget performance ensures that public funds are used economically, effectively, and efficiently—delivering real value to communities. This aligns directly with several United Nations Sustainable Development Goals (SDGs), particularly SDG 1 (No Poverty), SDG 3 (Good Health and Well-being), SDG 4 (Quality Education), SDG 14 (Life Below Water), SDG 15 (Life on Land), and SDG 17 (Partnerships for the Goals). By improving budget performance through value for money, governments can better allocate resources to essential services such as poverty alleviation, healthcare, education, and environmental conservation.

The study’s results emphasize that clear budget goals help government officials focus on achieving set objectives, while a strong organizational culture fosters responsibility and commitment. Motivation, especially intrinsic motivation, encourages active participation in budgeting, leading to better accountability and results. These insights offer practical implications for policymakers: training local government staff to enhance their skills and fostering a supportive organizational environment can substantially improve budget outcomes.

In summary, this research provides evidence that adopting the value for money concept in budgeting processes can lead to improved public sector performance, thereby supporting the achievement of key SDGs. Governments worldwide can benefit from these findings by promoting transparency, participation, and clear objectives in their budget management practices.