The policy of promoting development in the reform era of human development paradigm that puts people as actors and placing local economic development as a vehicle for community welfare. However, government policy as outlined in the budget form precisely the opposite direction to the proper role of government welfare for the community. This study used a qualitative paradigm methods and methods vestehen history. Budget management of the state shows the government's role in regulating the sources of revenue and public expenditure. Financial management practices of the country has made since the time of Prophet Muhammad are used for development purposes in the public welfare. Budget management in the reform era kenirja using structure-based budget that aims to improve the performance of government with good governance that requires the effectiveness, efficiency, transparency, and accountability in its management. However, the abuse of the budget of corruption still occurs in the management of this budget