Budget Transparency in Local GovernmentEmpirical Analysis on a Sample of 33 Galician Municipalities. (Versión provisional. Inglés pendiente de revisión).

Resumo

This paper is conceived as an exploratory study of the level and macro-determinants of budget transparency in Galician municipalities. After approaching the definition, scope, and international standards of budget transparency, we briefly review some empirical literature in the field. Then, we present a questionnaire designed basing on the last three pillars of the IMF�s revised Code of Good Practices on Fiscal Transparency (2007), as well as on our own knowledge about budgetary processes and local government realities. The answers given to the questionnaire by the surveyed financial comptrollers of 33 Galician municipalities allows some statistical validations and an empirical analysis. Although the differences among municipalities are notable, it could be said that their mean score amounts to a �fail grade in budget transparency�. By the Multiple Analysis of Correspondences (MAC), we can appreciate that the transparency in budget management tends to be perceived as less than transparency in budget control, but higher levels of transparency in budget management usually match against higher levels of transparency in budget control. Finally, a Generalized Additive Model (GAM) is estimated to test a set of possible macro-determinants of municipal budget transparency. Results suggest that total public spending and old population have a positive influence on budget transparency, while municipal staff spending, financial charge and total population have a negative one.