The Impact of Governance Indicators on Public Budget Transparency (An Analytical Study of a Sample of Arab Countries)

Abstract: This study aims to measure the impact of key governance indicators on budget transparency, based on the relationship between governance and budget transparency from a theoretical and institutional perspective. The study used panel data models to analyze the relationship between governance indicators (such as rule of law, control of corruption, voice and accountability) as explanatory variables and budget transparency as the dependent variable in nine Arab countries (Algeria, Egypt, Iraq, Jordan, Lebanon, Morocco, Sudan, Tunisia, and Saudi Arabia) over the period 2006–2023. Unbalanced panel data was used. The study concluded that control of corruption is not necessarily linked to the level of announced budget transparency. Furthermore, a well-established legal environment compels government authorities to commit to announcing budget details. Furthermore, media independence creates citizens' ability to hold the government accountable. These factors increase pressure on governments to be more transparent in preparing and implementing public budgets. The study recommends integrating political and legal governance tools into fiscal policies to create an integrated institutional environment that ensures budget transparency and subject it to oversight and accountability, thereby enhancing the efficient use of public resources and citizens' confidence in state institutions.