This study aims to examine and analyze the effect of budget efficiency on employee innovative work behavior, with self-directed learning as a mediating variable. Using a quantitative approach with the Partial Least Squares (SEM-PLS) analysis method, this study was conducted at a strategic agency within the local government. The results indicate that budget efficiency has a positive and significant influence on employee innovative work behavior. Furthermore, budget efficiency also has a positive effect on self-directed learning, indicating that resource constraints encourage employees to be more independent in developing their competencies. Self-directed learning was found to have a positive influence on innovative work behavior and acted as a significant mediator in this relationship. In conclusion, budget efficiency policies can stimulate innovation within the bureaucracy if supported by a strong culture of self-learning among employees as a compensatory mechanism for limited formal training
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