Budget transparency and financial sustainability

Abstract

PurposeThis study investigates the transparency of budgets by examining its relationship with financial sustainability, which is a central area of research in the public-sector context.Design/methodology/approachReferring to the public value framework, a large sample of 110 countries has been investigated, implementing econometric models where the dependent variable is the Open Budget Index (OBI), published by the International Budget Partnership (IBP), and the test variables are different indicators of financial sustainability.FindingsThe results that emerge from the analysis suggest that budget transparency could be positively associated with the financial sustainability of governments, beyond the traditional aims of enhancing citizens' trust and participation.Originality/valueThis research offers important insights for policy areas, suggesting that improving budget transparency could be beneficial for public administrations because of the positive association with financial sustainability.