, Ph.D., Assistant Professor, Polish Academy of Sciences, Warsaw, the Repulic of Poland
, Ph.D., Associate Professor, Department of Accounting and Taxation, Sumy State University; Sumy City Council, Co-chairman of the Coordinating Council on Participatory Budgeting, Ukraine
The evaluation of fiscal transparency impact on budget indicators performance is examined in the article according to the grouping of countries by the following features: budget transparency, income per capita, level of economic development and economic freedom. The main aim of the study is to determine the rela-tionship between fiscal transparency indexes and indicators of countries’ development. As the result of eval-uation it was determined that the main indicators of budget execution under the influence of its transparency vary in different groups of countries. In particular, the studies have shown that the value of Open Budget Index causes the reduction of public debt and the increase in the share of public expenditure, but in countries with high and medium level of development the opposite effect of budget transparency on public debt is characteristic, and the positive impact of budget transparency on the share of public expenditure is character-istic only for countries with high economic freedom.
Keywords: fiscal transparency, budget, public debt, public revenues, public expenditure.
JEL Classification: E62, H50, H60, H61.
Cite as: Fomina, J., Vynnychenko, N. (2017). Fiscal transparency: cross-country comparisons. Business Ethics and Leadership, 1(2), 39-46. Doi: 10.21272/bel.1(2).39-46.2017
- Albassam, B.A. (2015). The Influence of Budget Transparency on Quality of Governance. International Journal on Governmental Financial Management, 15(2), 89-109.
- Alt, J.E., Lassen, D.D. (2003). Fiscal transparency, political parties, and debt in OECD countries. Economic Policy Research Unit Working Paper. No. 03-02. P. 47.
- Best Practices for Budget Transparency / Organisation for Economic Co-operation and Development [Electronic resource]. Retrieved from http://www.oecd.org/gov/budgeting/Best%20Practices%
- Bushman, R., Piotroski, J., Smith, A. (2004). What Determines Corporate Transparency? Journal of Accounting Research, 2, 207-252.
- Cimpoeru, V.M. (2015). Budget transparency – supporting factor in the causal relationship between global competitiveness and control of corruption. ECOFORUM, 4(Special Issue 1), 180-186.
- Jarmuzek, M. (2006). Does Fiscal Transparency Matter? The Evidence from Transition Economies [Electronic source]. Retrieved from https://iweb.cerge-ei.cz/pdf/gdn/rrcv_77_paper_03.pdf.
- Teig, M. (2005). Fiscal Transparency and Economic Growth. Retrieved from https://www.uni-bamberg.de/fileadmin/uni/fakultaeten/sowi_lehrstuehle/vwl_finanzwissenschaft/Lehrstuhl/EDS5.pdf. (Accessed November 20, 2016).
- Tilly, J. (2013). Fiscal transparency and sustainability of public debts in times of crisis: how to strengthen investor confidence? Retrieved from http://www.lse.ac.uk/IPA/images/Documents/
PublicSphere/2013/8-fiscal-transparency-spreads-20121.pdf (Accessed 14 November 2016).
- Zuccolotto, R., Teixeira, M.A.C. (2014). The Causes of Fiscal Transparency: Evidence in the Brazilian States. R. Cont. Fin., USP, São Paulo, 25(66), 242-254.
- The World Bank: official web-site. (2015) Retrieved from: http://www.worldbank.org/. Accessed 06 December 2016.