Fraud in Public Budgeting: Evidence from Indonesia

Fraudulent behavior of participants in the budgetary process depending on situational and individual factors is studied in this research. The situational factors included obedience pressure and opportunity. The individual factor included Machiavellianism. This study was a laboratory experiment with...

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Bibliographic Details
Main Author: N. W. Rustiarini
Format: Article
Language:Russian
Published: Government of the Russian Federation, Financial University 2023-05-01
Series:Финансы: теория и практика
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Online Access:https://financetp.fa.ru/jour/article/view/2087
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Summary:Fraudulent behavior of participants in the budgetary process depending on situational and individual factors is studied in this research. The situational factors included obedience pressure and opportunity. The individual factor included Machiavellianism. This study was a laboratory experiment with blended methods. The subjects were accounting employees in the public and private sectors of Indonesia. The results indicate that the authorities’ pressure significantly influenced their subordinates in decision-making. This opportunity is a root cause of fraud. This research also confirmed that individuals with high Machiavellianism have more fraudulent behaviors than those with low Machiavellianism. The sensitivity test found that the proportion of female participants did not affect the primary outcome. Similar to gender analysis, there was no difference in fraudulent behaviors between the accounting employees in the Indonesian public sector and those in the private sector. The Government understand the factors causing the employees’ fraudulent behaviors in budgeting. State institution will strive to maintain public trust and resources efficiently and effectively.
ISSN:2587-5671
2587-7089