Open Budget Effect on Corruption in the EAEU Countries

Abstract

Until 1991,  the Eurasian Economic Union   (EAEU) countries, namely Armenia, Belarus, Kazakhstan, Kyrgyzstan and Russia, were part of the unified budget system of the USSR.   After the collapse of the Soviet Union and subsequent independence, the countries began to pursue an independent fiscal policy. In all five countries, a number of reforms have been implemented that have resulted in changes in the organization of fiscal policy, the creation of new fiscal institutions and the corresponding legal framework. Aim . To reveal the open budget effect on the corruption on the cases of the EAEU countries.Tasks. We  analyze data from international organizations that assess the current situation in these countries.Methods. We assess the impact of open financial data (according to the Open Data Inventory, ODIN, prepared by Open Data Watch) on corruption for the five EAEU countries (2015–2020) based on unbalanced panel data analysis.Results . The hypothesis posed about the positive anti-corruption impact of an open budget in the EAEU countries was confirmed. We found that the quality of regulation and openness of the budget can affect the reduction of corruption.Conclusion. It is concluded that the EAEU countries differ significantly in anti-corruption and open budget policies and practices, as well as in the international organizations indices.