Issue #1 (Volume 14 2025)

The aim of this study is to assess the factors affecting budget performance through the concept of value for money. This quantitative study uses a rating scale and a survey. The samples included 426 government officials from 43 regional organizations in Makassar City, South Sulawesi Province, Indonesia. The final sample size was 153 respondents. According to the results, participatory budgeting (β = 0.190; p-value = 0.017 < 0.05), budget goal clarity (β = 0.428; p-value = 0.000 < 0.05), and commitment (β = 0.339; p-value = 0.000 < 0.05) have a direct impact on budget performance. As a moderating variable, organizational culture affected participatory budgeting (β = 0.047; p-value = 0.004 < 0.05), budget goal clarity (β = 0.091; p-value = 0.000 < 0.05), and commitment (β = 0.066; p-value = 0.000 < 0.05). Moreover, motivation, as a moderating variable, affected participatory budgeting (β = 0.041; p-value = 0.019 < 0.05), budget goal clarity (β = 0.078; p-value = 0.000 < 0.05), and commitment (β = 0.070; p-value = 0.000 < 0.05). This study offers significant implications for local government officials in selecting the most effective variables to improve budget performance. For policymakers, the findings suggest supporting skill optimization to carry out government tasks. Finally, it is necessary to reconsider the approach to training the local government staff.

This study aims to analyze the effect of political will and information technology on fraud prevention either directly or through the quality of financial reporting information. This study uses a survey method that intentionally targets five village officials responsible for village financial administration. The survey was conducted in Pangkep Regency, South Sulawesi Province, Indonesia. Data collection was carried out using a questionnaire with a total research sample of 325 respondents. Data analysis was conducted using partial least squares structural equation modeling with the help of the SmartPls 4.0 application. The results showed that political will had a positive and significant effect on fraud prevention (β = 0.198; t-value = 3.230 > 1.97) but had no effect on the quality of financial reporting information (β = 0.053; t-value = 0.696 < 1.97). Information technology had a significant negative effect on fraud prevention (β = –0.198; t-value = 3.019 > 1.97) and a significant positive effect on the quality of financial reporting information (β = 0.186; t-value = 2. 863 > 1.97). Fraud prevention has a positive and significant effect on the quality of financial reporting information (β = 0.161; t-value = 2.598 > 1.97). Political will has no significant effect on fraud prevention through the quality of financial reporting information (β = 0.009; t-value = 0.628 < 1.97), while information technology has a positive and significant effect on fraud prevention through the quality of financial reporting information (β = 0.029; t-value = 2.093 > 1.97).

The increasing number of internally displaced persons (IDPs) in wartime Ukraine leads to growing problems in social protection funding. Under these circumstances, the evaluation of the effectiveness of public finance use is of increasing importance. The study aims to evaluate the effectiveness of public finance for internally displaced persons’ social protection, adapting the KPI methodology for analysis on the national level. The effectiveness is considered following the OECD approach as the extent to which the intervention achieved its objectives and results. At macrolevel of research, the integral indicator was developed based on indicators of input (financing of social protection programs), output (involvement of IDPs in social programs), activity (funding per recipient and multiplicative effect in GDP growth), mechanism (administrative costs for achieving results), and control (effectiveness of IDPs’ social protection compared to other demographic groups). Thirty indicators in total were used (e.g., budgetary funding allocated for housing assistance; budget expenditures on staff salaries of the authorities responsible for certain programs; coverage rate of unemployed IDPs receiving vocational training). The essential distance from the maximum level of expected results (1.0) allows concluding the low effectiveness in this area of public finance use: from 0.330 in 2020 to 0.668 in 2023. Gaps are evident in each direction, especially in input performance (the highest value did not exceed 0.370). The best results were achieved in housing funding and employment governance. The proposed approach is useful for analyzing gaps and identifying opportunities to improve the management of other social programs.

The tax capacity exercised by subnational governments in a country is fundamental in shaping the tax and economic system, especially when there is a coordination of interests, such as in the Pacific Alliance. Therefore, the coordination exercised by its member countries – Chile, Colombia, Mexico, and Peru – must be strategically aligned to comprehensively strengthen this Alliance. Considering the above, the objective of this study is to identify the similarities or differences between these four countries, check the tax behaviors of their subnational governments, and assess the degree of their impact on this trade agreement. Based on a longitudinal quantitative methodology, the results reveal significant differences between the subnational collection systems, identifying that Mexico and Peru are the only members that have maintained a similar trend, significantly differentiating themselves from Chile and Colombia. Despite their subnational tax structures, the main finding is that the Pacific Alliance needs to implement more coordinated actions in tax matters to strengthen its economic activities with other countries. A lack of coordination could counteract the commercial and financial strategies presented as a regional bloc, impacting investment, competitiveness, and regional sustainability. Overall, coordinated tax policies within the Pacific Alliance can drive regional integration, contributing to the region’s long-term stability.

This paper aims to analyze the influence of local revenues, unconditional grants, and total population on regional expenditure in six provinces in Sulawesi, Indonesia. Panel data covering the period from 2013 to 2023 were analyzed using the fixed effects model (FEM) using the STATA software. The results show that local revenue has a significant positive effect on regional expenditure (β = 0.366; p-value 0.000 < 0.05), unconditional grant has a significant positive effect on regional expenditure (β = 0.501; p-value 0.000 < 0.05), and total population has a significant positive effect on regional expenditure (β = 1.207; p-value 0.001 < 0.05). The results show considerable regional disparities, with Southeast Sulawesi and North Sulawesi displaying the highest dependency on central funds, while South Sulawesi exhibits relatively greater fiscal independence. These findings highlight the need for policy reforms to strengthen local revenue generation, minimize reliance on central government transfers, and prioritize investments in infrastructure. Such strategies are crucial for ensuring fiscal sustainability, enhanced local autonomy, and long-term regional growth.

The paper examines the transparency of public finances, with a specific focus on the transparency of Ukraine’s defense budget. The relevance of this study arises from the ongoing war and the increasing public demand for accountability. The study aims to identify concrete measures to address existing gaps in defense budget transparency. The paper applies a comparative methodology, analyzing the feasibility of implementing Scandinavian transparency practices, particularly from Sweden and Norway, which are known for their advanced budgetary oversight mechanisms.
The study identifies key challenges, including bureaucratic inertia, limited technical capacity, political constraints, and national security concerns. To address these issues, the paper evaluates strategies such as developing digital budget platforms for real-time access to defense expenditures, participatory budgeting, and enhanced institutional accountability. The results indicate that Ukraine could benefit from secure digital platforms for real-time access to defense budget data, targeted legislative amendments to improve oversight, strengthened institutional capacity for in-depth budget reviews, and public consultations on non-sensitive areas of defense spending to foster public trust.
The findings suggest that gradual and context-sensitive improvements in defense budget transparency are both feasible and essential for optimizing resource allocation and strengthening public confidence. By providing a structured approach, this study contributes to the broader discourse on public finance transparency, offering practical recommendations tailored to Ukraine’s specific challenges.

The purpose of this study was to examine the effects of the voluntary disclosure program and the harmonization of tax regulations on increasing the amount of tax payable by taxpayers in Indonesia. In addition, it explored their role in the formation of different levels of budgets through tax revenues. This analysis focused on individual taxpayers registered as active taxpayers, with a final sample of 95 respondents. Multiple regression analysis was employed as the analytical tool. The results show that the voluntary disclosure program did not significantly affect the increase in taxes payable, as it does not always result in additional tax liability or expose taxpayers to penalties, interest, or fines. In contrast, the harmonization of tax regulations significantly influenced the increase in taxes payable. Simplified tax administration and improved compliance, driven by tax regulation changes, led to higher tax payable. The findings imply that adjustments to tax regulations can have a substantial impact on the formation of tax revenue, which is vital for government budgetary allocations at various levels.

There is a high prevalence of financial statement fraud and wasteful expenditure in South African municipalities. According to the fraud triangle model, pressure, opportunity, and rationalization are the underlying causes of financial statement fraud. The study aimed to examine the effectiveness of the fraud triangle model in detecting financial statement fraud in South African municipalities. The study developed variables serving proxy measures for pressure, opportunity, and rationalization. The variables were analyzed and tested using the logistics regression model and publicly available financial data for the 257 municipalities in South Africa over six years, from 2015/16 to 2020/21. The results showed a high correlation between fraud in financial statements and four fraud risk markers. High capital expenditure, high accrual amounts, poor liquidity ratios, and high leverage ratios are the risk elements. The results contribute fresh perspectives to the corpus of information already available on financial statement fraud in South Africa. To ascertain the effectiveness of the fraud triangle model in identifying and preventing financial statement fraud, future studies should incorporate different range of variables, techniques, and sample sizes.