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This study aims to describe the relationship between participatory budgeting and budgetary slack. This study uses a survey methodology to collect data. Sampling technique was Convenience Sampling. The samples in this study were 70 officials in total and collected from the Regional Financial and Asset Agency, the Culture and Tourism Agency, the Public Library, Archives and Documentation Service, the Cooperative, Industry and Trade Office, and the Regional Development Planning Agency. The data was then analyzed using a simple regression analysis method. The results showed that Participatory Budgeting had a positive and significant effect on Budgetary Slack.

Based on the results of the analysis, it can be concluded that Participatory Budgeting has a significant positive effect on Budgetary Slack, indicating that the higher the level of participation in the budgeting process, the higher the chance of budgetary slack.The study suggests increasing the sample size to include Echelon II officials for better generalization, using diverse research methods like interviews to validate perceptions, and incorporating additional variables such as organizational commitment, organizational culture, leadership style, and ethical considerations in future research.

Future research should explore the influence of organizational commitment and culture on the relationship between participatory budgeting and budgetary slack, as these factors can significantly impact the effectiveness of participation. Additionally, investigating the role of leadership styles in moderating this relationship could provide valuable insights into how different leadership approaches affect budgetary outcomes. Furthermore, a deeper understanding of the ethical considerations of regional officials and how these influence budgetary slack is warranted, potentially through qualitative studies exploring their motivations and decision-making processes. Expanding the sample to include a wider range of officials, including those at the Echelon II level, would enhance the generalizability of the findings. Finally, employing mixed-methods research, combining quantitative data with qualitative interviews, could provide a more nuanced and comprehensive understanding of the complex dynamics at play in regional budgeting and budgetary slack.

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