<![CDATA[Abstract PAD becomes the basis for consideration for local governments when preparing budgets that will be agreed with the DPRD. Some of the PAD targets have not been achieved, so there is a possibility of a shortage of funds to finance expenditures. When setting PAD targets, local governments inflate the target so that they can budget the same amount of spending. If the income does not reach the target, there will be a cut in spending allocation. Therefore, this research is needed to analyze how the pattern or behavior in the performance of PAD and its components. Poor performance for PAD or PAD targets not being achieved can have several meanings, one of which is that PAD targets are forced or are above potential. The DPRD or the regional head himself imposes a high PAD target because if the PAD target is high, then the allocated expenditure can also be high. PAD that exceeds the target may have agency problems, because the SKPD proposes a PAD target that is too low. Agency problems in budget changes occur when budget changes are based on fulfilling the self-interest of budget decision makers. Thus, the determination of the budget on the income and expenditure will result in a variance or difference between the budget and realization. The difference between the budget and the realization will indicate inaccuracies in setting targets in the budgeting process.Keywords: Anggaran, PAD, Realisasi, Teori Keagenan, Varian.]]>
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