Determinants of budget absorption with regulation as a moderating variable in the central Lombok regency government

This study aims to examine the impact of budget planning and procurement of goods/services on budget absorption, with regulation as a moderating variable. The research employs a quantitative method with a survey approach, involving 100 respondents comprising activity technical implementation officers and expenditure treasurers from 33 Regional Government Organizations in Central Lombok Regency. Data analysis was conducted using using Partial Least Squares Structural Equation Modeling (PLS-SEM) with the assistance of SmartPLS Version 4. "The results indicate that budget planning has a negative and significant effect on budget absorption, whereas the procurement of goods and services has a positive yet non-significant effect. Furthermore, the findings reveal that regulation does not strengthen the influence of budget planning or the procurement of goods/services on budget absorption. This study highlights the need to improve the quality of budget planning and simplify the procurement process to enhance the efficiency of budget absorption. Additionally, it emphasizes the importance of evaluating existing regulations to ensure they optimally facilitate budget implementation.