Budget policy is a strategic instrument for local governments to respond to regional economic dynamics and achieve community development and welfare. This study aims to analyze the implementation of the budget policy, as stipulated in Regional Regulation Number 8 of 2023 on the Regional Revenue and Expenditure Budget for Fiscal Year 2024, in Malang Regency, and to identify the supporting and inhibiting factors in its implementation. This study uses a qualitative, descriptive research approach. Data collection techniques included in-depth interviews, observation, and documentation. Data analysis was carried out using data reduction, data presentation, and conclusion drawing techniques. The results show that budget policy implementation in Malang Regency has been carried out in accordance with the regulatory framework and formal mechanisms of local government, but has not been fully optimal in addressing regional economic dynamics. Based on George C. Edward III's policy implementation theory, the internal policy communication aspect has been running quite well, but external communication to the community and MSMEs remains limited. Limited regional budgets, gaps in human resource capacity between OPDs, and suboptimal information technology support affect the effectiveness of policy implementation. The disposition of policy implementers shows a positive trend, although there are variations between individuals and work units. Meanwhile, the bureaucratic structure has a clear division of tasks, but the complexity of procedures and coordination across regional government agencies (OPDs) pose obstacles to increasing policy flexibility. Supporting factors for budget policy implementation include the commitment of regional leaders and officials, a structured planning and budgeting system, and public support and participation. Inhibiting factors include budget limitations, bureaucratic complexity, national and regional economic dynamics, and changes in central government polic