incrased transparency of public sector budgeting through implementation of performace audit

The contemporary public administration brings the shift of stakeholder expectations from stakeholder expectation about the government works in accordance with applicable laws become stakeholder expectation about well-performing government. One of the resources to produce a good performance for the government is the public sector budget. The budget is prepared through a budgeting process from budget formulation to budget realization. Even though, there are difficulties for stakeholders, especially the broad public to get a clear picture about the budgetary process. Because of that, stakeholders needs accountability tool in the effort to obtain the accountability of the budget. This study discusses about budget transparency and accountability both from the performance audit results of the budget implementation and budget formulation. Transparency is useful to encourage budgeting that leads to outcomes. As Martin (2002) stated, “In addition to a focus on the outcomes of government programs, performance accountability also seeks to promote transparency in, and improve the external communications of, governments. Transparency in its broadest sense is taken to mean that governments should be as open and visible as possible to their stakeholders (e.g., elected officials, citizens, interest groups and others). �This study uses analysis of secondary data derived from the results of performance audit reports which produce by external audit institution (BPK) related budgeting for the period 2012 to 2015. This study indicates that the existence of a BPK’s performance audit supports the accountability value of budgeting. By this audit, the relevant stakeholders of government’s department budgeting can be helped to see the transparent accountability of the government in terms of budgeting. Besides that, the evaluation through the audit will also provide recommendations for budgeting improvement. This study still find limitation of transparency such as difficult to access the audit report directly unless through bureaucratic procedure.