The Impact of Government Budgeting on Corruption in Public Finance: A Cross-Country Analysis

This study examines the impact of Government Effectiveness, Economic Development, and Political System Type on Corruption Perceptions Index (CPI) scores across various countries for the period 2018-2022. The research uses multiple regression analysis to examine how these three variables affect perceived corruption in public finance. The analysis reveals that Government Effectiveness significantly reduces perceived corruption, as reflected in the CPI scores. This finding highlights the importance of transparent government operations in combating corruption. The study shows that higher GNI per capita is associated with lower perceptions of corruption. This highlights the role of economic growth in improving governance and reducing corruption. Lastly, the research finds that the type of Political System, particularly those characterized by higher political rights scores, significantly influences corruption perceptions. Democratic countries with greater political freedoms tend to have lower CPI scores, indicating reduced corruption. The study’s conclusions have important implications for policymakers, suggesting that enhancing Government Effectiveness, fostering economic development, and strengthening democratic institutions are vital strategies in combating corruption. These findings offer insights for future research, emphasizing the need to explore the interplay of cultural, social, and technological factors with economic and political variables in the context of corruption