This study aims to analyze the influence of education, understanding, training, and external preasure of the effectiveness of performance based budgeting implementation and budgeting absorption. Sample in this study are head of department, secretary of department, treasurer expending of department, and head of program planning department on province of Yogtakarta special region. This study uses primary data collected using questionnaires. In this study, the sample of 113 respondents selected using purposive sampling. The analysis tool used in this study is Partial Least Square (PLS). Based on the results of data analysis shows that education, understanding, trainning, and external preasure has a significant positive effect on performance based budgeting implementation. Education, trainning, and external preasure has not a effect on absorption budgeting. Understanding and performance based budgeting implementation has a significant positive effect on absorption budgeting.