The Potential of Budget Participation and Dalihan Natolu Leadership Style to Improve Community Welfare in the Toba Caldera Tourism Geography Area

Abstract

Objective: This research analyzes the determinants of budgetary participation's effect on financial performance through Dalihan Natolu's leadership style in 4 districts in the Toba Caldera region and conducts a descriptive economic analysis of social and economic indicators in 7 districts post-Regional Autonomy and Fiscal Decentralization. Analyze village category development using the village development index (IDM) in 7 Toba Caldera districts. Estimating economic development parameters in 7 Toba Caldera districts in North Sumatra.   Method:  This study uses a quantitative method with descriptive analysis. Descriptive statistical analysis in this study was carried out using frequency distribution analysis and inferential statistical analysis including: evaluation of the assumptions of the structure equation model (SEM), SEM analysis, model fit test and hypothesis testing. The data analysis technique in this study uses Partial Least Square (PLS). PLS is a Structural Equation Modeling (SEM) equation model with an approach based on variance or component-based structural equation modeling. This research was conducted in 4 (four) administrative districts located around the Lake Toba Tourism Area which in their kinship life absolutely adhere to the local wisdom of Dalihan Natolu, namely Toba Regency, Samosir Regency, North Tapanuli Regency, Humbang Hasundutan Regency.   Conclusion : This quantitative study's findings Budget Participation Factor also affects Financial Performance moderated by Dahlian Natolu's Leadership Style, as shown by t statistics > t table (3,961 > 2,032). To strengthen this analysis, you can also use the P Value, with the condition p < 0.05, which shows 0.000 < 0.05. In 2019, the Human Development Index in 7 Toba Caldera Region Regencies measured Life Expectancy (UHH), Average Length of Schooling (RLS), and Expenditure Per Capita. In 2019–2020, the Toba Caldera Region's Gross Regional Domestic Product (GRDP) is stable and led by Agriculture, Forestry & Fisheries, Wholesale and Retail Trade, and Industrial Management. Karo Regency has the highest HDI and Humbang Ha Anglean the lowest. The comparative IPD for that year increased in 7 Toba Caldera Region Regencies from 2014 to 2018. Toba Caldera districts' Human Development Index (IPM) increases somewhat with GRDP per capita.