Social Networks-Budgetary Discipline Linkages in Sub-National Entities

This research intervenes with the seemingly endless empirical debate that seeks explanation to the notorious budgetary discipline problem in the local government. Some scholars attribute it to social networks, but others emphasize entity internal control systems. Supported by budgetary theory-structural equation modeling (SEM) triangulation, the researchers examined data from 33 districts, seven municipalities, and 345 sub-counties in Uganda (East Africa)’s north-western and eastern regions. The SEM results revealed that socio-economic structures and partisan politics are key social network constructs to predict budgetary discipline. However, another attribute, ethnicity, is not. Additionally, the internal control system mediates the social networks-budgetary discipline relationship as initially anticipated. Implications for theory and practice are discussed

Fiscal illusion as an incentive for local government public expenditure efficiency: The influence of community sensitization

Although the effect of public expenditure efficiency on local government fiscal performance is widely-documented, what precisely explains expenditure efficiency remains largely unclear. Nevertheless, past research holds fiscal illusion as the most likely predictor and community sensitization very critical for fiscal illusion-expenditure efficiency formation. We employed fiscal illusion theory to investigate possible fiscal illusion-community sensitization-expenditure efficiency mediation in 16 districts, 6 municipalities, and 160 sub-counties of Uganda’s northern region. Over the years, Uganda; an East African country, is applauded for its fiscal federalism proficiency. But presently, its northern region is grappling a 20-year post-conflict trauma likely to compromise entity spending efficiency. Structural equation modeling results suggest that all the four fiscal illusion constructs: fiscal imbalances, political divide, tax payment bias, and fiscal sabotage, predict changes in expenditure efficiency. However, community sensitization does not mediate the fiscal illusion-expenditure efficiency linkages. Implications for these findings and possible direction for future research are discussed

Digital financial inclusion and fiscal solvency in Uganda’s local governments: A review of regulation mediation

Fiscal solvency has become a popular phenomenon in numerous decentralizing countries in recent years. The ability to mobilize adequate revenue to fund expenditure in a given budget period, and provide public goods and services, makes fiscal solvency very pertinent, especially in local government. However, policy, practice, and research, claim that most local entities, both in the developed and developing world, rarely achieve required fiscal solvency standards. While no clear explanation of the problem abounds, digital financial inclusion dominates the ongoing debate. Besides, regulation is also considered a very crucial factor for fiscal solvency. This study examines the probable mediation effect regulation has on the digital financial inclusion-fiscal solvency relationship in local governments in Uganda, East Africa. Based on a cross-sectional research design, data were collected from 21 districts, nine municipalities, and many sub-counties in the country’s post-conflict northern regions. The data were then subjected to structural equation modeling analysis. Its findings reveal that digital financial inclusion explains changes in fiscal solvency in surveyed local governments. Moreover, regulation has an indirect influence on the digital financial inclusion-fiscal solvency formation. Findings implications to practice and theory are discussed, and future research direction is provide