The Effect of Budget Gaps on the Relationship of Budget Control, Organizational Mechanization on Regional Tax Performance in Indonesia

Abstract

This research was conducted against the background of the low fiscal capacity of the Indonesian local government so that in financing its development very dependent on transfer funds, while the efforts made are not optimal. local tax performance, therefore to determine the effect of budgetary slack, budgetary control and organizational mechanization on local tax performance in Indonesia whether it becomes an obstacle so that tax performance can be optimal. Researchers quoted data based on questionnaires sent to all 120 provincial, district and city tax collection organizations in Indonesia. From the answers to the questionnaire, the desired data was obtained, which was then processed using the technical analysis of the Structural Equation Model (SEM) data. In this study, budgetary gaps partially mediate the effect of budget control on local tax performance, budget gaps mediate the effect of organizational mechanization on local tax performance. This research is the first to write about organizational mechanization of inequality and its relationship to the optimization of regional tax performance, and it is also the first time that it is conducted on local governments in Indonesia with different characteristics of local taxes that are different from central taxes.