Excessive Caution As A Cause Of Budget Surplus (SILPA): An Analysis Of Auditor-Related Fear In Local Government Budget Execution

Abstract

This study examines the factors contributing to the formation of Budget Surplus (Sisa Lebih Perhitungan Anggaran or SiLPA) in regencies and cities within the Province of West Nusa Tenggara, with a specific focus on the excessive caution exercised by local government officials in response to potential audit findings. The findings indicate that one of the primary causes of SiLPA is the tendency of officials to withhold budget execution due to concerns over possible administrative sanctions arising from audit outcomes. This fear drives overly cautious behavior in fiscal decision-making, particularly in the final quarter of the fiscal year, leading to delays in program and activity implementation. This phenomenon is further exacerbated by limited understanding of financial regulations and the suboptimal performance of internal control systems in supporting accountable budget realization. The implications of these findings underscore the need to strengthen the capacity of local government personnel, simplify audit-related regulations, and enhance the quality of financial reporting systems in order to promote effective and timely public spending.