Fiscal corruption and local government budgetary efficiency: The role of leadership consultation

Abstract

Fiscal corruption has been implicated a predictor of budgetary efficiency in local government for quite a long time. Similarly, leadership consultation has been argued a critical aspect in the fiscal corruption-budgetary efficiency relationship. However, despite the probable fiscal corruption-leadership consultation influences, existent literature holds no conclusive position on this matter. On the basis of both garbage-can-budgeting model and budgetary incrementalism theory, this study investigated fiscal corruption explanation to changes in budgetary efficiency. Moreover, it examined mediation of leadership consultation in the fiscal corruption-budgetary efficiency linkages. Data were collected from 27 districts and 180 sub-counties in eastern Uganda, East Africa. Regression analysis and structural equation modeling results indicate that discretionary public power, rent-seeking behavior, and legal system; notable fiscal corruption attributes, predict budgetary efficiency. However, leadership consultation has no mediation influence on surveyed entities’ fiscal corruption-budgetary efficiency association. Implications to theory and practice are discussed and future research direction proposed.