<![CDATA[Public organizations must preserve service and infrastructure outcomes while responding to fiscal restraint, yet capability development is often among the first expenditures exposed to adjustment. This study explains how Indonesia’s 2025 budget-efficiency policy reshaped expenditure priorities and human resource development (HRD) practices in the Office of Water Resources and Highways of Southeast Sulawesi Province. A descriptive qualitative case-study design combined interviews with key functional informants, observation, and organizational documents. The analysis identified four connected themes: strategic expenditure reprioritization, continuity of formal performance targets under constrained enabling resources, reduced access to formal development, and substitution toward lower-cost workplace learning through mentoring, coaching, peer exchange, train-the-trainer arrangements, field-based learning, and digital resources. The study develops a substitution-and-safeguarding perspective: fiscal restraint can shift HRD from purchased formal training toward embedded workplace learning, but substitution preserves capability only when relevance, equitable access, protected learning time, competent support, and transfer evaluation are safeguarded. The findings extend public-sector HRD research by linking fiscal adjustment to changes in the architecture of employee learning rather than treating budget efficiency and workforce capability as separate managerial agendas.]]>
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