Abstract:

Budget transparency refers to the disclosure of processes and actions related to the collection of public revenues and realization of public expenditures. Budget transparency is expected to contribute positively to fiscal discipline as it provides public scrutiny. In this context the aim of this article is to evaluate and analysis the effect of budget transparency on government debt stock and budget deficit. In the study, budget transparency index for the period 2006-2019 is used as a transparency indicator. According to the results of panel FMOLS (Fully Modified Ordinary Least Squares) and panel DOLS (Dynamic Ordinary Least Square) analysis conducted within the scope of twelve countries in emerging market economies, there is a negative and significant relationship between budget transparency and budget deficit. On the other hand a positive and significant relationship is found between budget transparency and debt stock. The fact that no other applied research has been found in Turkey within the scope of the relationship between transparency and fiscal discipline constitutes the contribution of this study to the literature.

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