How Budget Transparency Affects Public Trust in Government: A Comprehensive Analysis

Abstract

Budget transparency—the open disclosure of government financial information—is increasingly recognized as essential to democratic governance and legitimacy. Empirical research indicates that jurisdictions with well‐implemented transparency measures often experience notable improvements in public trust. For example, studies have shown that regions with robust fiscal disclosure can see trust levels improve by 10% to 20% over multi-year periods. Cross-national surveys further suggest that nations scoring highly on open budget initiatives tend to exhibit elevated levels of citizen engagement and satisfaction with government performance. Theoretically, greater transparency helps reduce information asymmetry between public officials and citizens, thereby enhancing accountability as posited by both the principal-agent framework and broader accountability theories. However, the positive impact of budget transparency on public trust is contingent on contextual factors such as institutional capacity, media freedom, and citizen fiscal literacy. This article synthesizes theoretical frameworks, empirical findings, and policy analyses to explore how enhanced budget transparency can foster public trust, and it provides evidence-based recommendations for strengthening democratic accountability in diverse governance settings.