<![CDATA[Recurring fiscal deficits and liquidity constraints among Indonesian local governments have raised concerns regarding short-term fiscal sustainability and governance quality. This study analyzes the impact of budget deviations and long-term liabilities on local governments’ short-term solvency, with particular attention to accountability and internal control maturity. A quantitative approach was employed to examine 170 panel data observations from 34 provinces over the period 2020–2024, using a fixed-effect model and panel-corrected standard errors. Revenue budget deviation, expenditure budget deviation, and long-term liabilities were treated as independent variables, while accountability and internal control maturity were included as control variables. The findings reveal that revenue budget deviation, expenditure budget deviation, accountability, and internal control maturity significantly influence short-term solvency, whereas long-term liabilities do not. Accordingly, budget inaccuracies undermine local governments’ financial capacity to sustain operational stability, with accountability and internal control playing crucial roles in maintaining short-term solvency. The study concludes that fiscal discipline and government control are crucial for promoting regional fiscal sustainability, with implications for governance reform to enhance governance. By integrating agency theory with public financial management frameworks, this study contributes to the literature on subnational fiscal governance and provides practical implications for improving budgeting accuracy, oversight quality, and short-term financial sustainability in decentralized governments.]]>
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