A Digital Governance Model for Regional Financial Planning and Budgeting to Strengthen Effectiveness and Transparency at the Directorate General of Regional Financial Development

Abstract

Digital transformation in regional financial planning and budgeting requires integrated data, substantive validation, process traceability, and accountable decision-making. However, the Regional Government Information System has not fully resolved limitations in data quality, substantive validation, interoperability, system stability, user capacity, and evaluation traceability. This study aims to analyze the existing digital governance of regional financial planning and budgeting, identify factors affecting effectiveness and transparency, and formulate a digital governance model. A qualitative approach with an embedded single-case study was conducted at the Directorate General of Regional Financial Development. Data were collected from 16 purposively selected informants through in-depth interviews, non-participant observation, and document analysis, followed by data condensation, thematic coding, data display, and verification. The findings show that digital governance has shifted regional budgeting from fragmented arrangements toward a more integrated and standardized ecosystem, improving procedural effectiveness and transparency, while substantive weaknesses remain in data quality, validation, audit trails, evaluation tracking, and interoperability. The novelty is the Integrative-Substantive Digital Governance Model, which positions digital governance as a socio-technical and institutional ecosystem integrating data quality, traceability, interoperability, accountability, and central-regional collaboration to strengthen regional budget governance.