ABSTRACT
Local Government performance came into the spotlight when the Indonesian Corruption Watch (ICW) announced that the irrelevant use of funds became the highest factor of corruption throughout 2017. The loophole in the budget mechanism triggers the corruption. This research attempt to find the interconnection between budget actor social preferences and decision making in budget setting process. The research contributes both in principle and empirical. The results of this research indicate that budget actor social preferences have a significant effect on decision making in budget settings process. The findings also suggest the superior should give a concern to the conformity between activities and government plan, and how to improve subordinate sense of belonging that quite low to their institution.
