Budget quality and the need for risk management

Abstract

The preparation of transparent budget documents requires politicians to explain complex concepts to a wide range of audiences. This gives tangible benefits. Clear and transparent budget documents can enhance the impact of policy, budget planning, legislative oversight and citizen participation. Such reports allow policy makers to send signals about emerging economic and fiscal trends, helping shape public debate and anticipating future responses. An open budget that takes into account economic and fiscal realities in an understandable form promotes accountability and effective budget planning. This allows civil society organizations to interact with the budget. This, in turn, strengthens the social contract between citizens and the state. Certainly, clear writing not only aids relevant authorities in honing their budget strategy and policy thinking but also contributes to improved and more coherent policy decisions. The primary objectives of this research encompass an examination of how attributes like transparency, assessment, and goal accuracy in budget reporting influence budget efficiency. Additionally, the study explores the influence of risk management as a constraining factor on the correlation between budget characteristics and the resulting budget reports. In practical terms, the findings of this investigation aim to enhance the effectiveness of entities involved in the planning and execution phases, thereby contributing to overall operational improvement.