Budgetary Institutional Adjustments and Fiscal Discipline in Local Government: An Assessment of Entity Location Mediation

• Main Authors: Paul Onyango-Delewa, Isaac Nabeta Nkote
• Format: Article
• Language: English
• Published: International Public Finance Conference/Turkey 2019-07-01
• Series: International Journal of Public Finance
• Subjects: Fiscal Discipline; Budgetary Institutional Adjustments; Location
• Online Access: https://dergipark.org.tr/download/article-file/773531
• ISSN: 2548-0499; 2548-0499

For quite a long time, budgetary institutional adjustments have been implicated as important determinants of fiscal discipline in local government. Moreover, entity location has been argued a pivotal and influential factor in the budgetary institutional adjustments-fiscal discipline linkages. However, to date no research is conclusive enough on what precisely explains budget discipline especially in Sub-Saharan Africabased localities. On the basis of a cross-sectional research design, this study investigated the budgetary institutional adjustments-entity locationfiscal discipline triangulation in Uganda, East Africa. Data were collected from 26 districts, 9 municipalities and a number of sub-counties spread across four purposively-selected geographical regions of the country. The regions are north-western, northern, north-eastern, and eastern. Data were then subjected to both regression and structural equation modeling statistical analysis. Notably, results from structural equation modeling revealed that budgetary institutional adjustments have strong predictive power on fiscal discipline. Conversely, entity location does not have any influence on the budgetary institutional adjustments fiscal discipline relationship. Theoretical and practical implications from the findings are discussed.