Institutional Management of Local Administrative Organizations on Disclosure of Fiscal and Budgetary Information and Participatory Planning and Budgeting: A Case Study of Local Administrative Organizations in Municipality Level

Abstract

The study of institutional management based on the new institutional economic approach places importance on “institutions” as social groups or organizations that play a key role in controlling human behaviors and managing resources in an economic system. In this research, institutions refer to local administrative organizations that have a responsibility to disclose fiscal and budgetary information to people. This research aimed to investigate the analytical frameworks for institutional management of local administrative organizations on disclosure of fiscal and budgetary information and participatory planning and budgeting. The grounded theory was adopted to explore and study the analytical frameworks. The data obtained from identification of phenomenon was used to create a concept. Then the developed concept was used to find theoretical conclusions in order to explain and understand the institutional management of local administrative organizations on disclosure of fiscal and budgetary information. The analytical frameworks focused on the interactions between the local administrative organizations as the source organizations responsible for public disclosure of fiscal and budgetary information and the local people who received that information in order to make decisions on participatory planning and budgeting. The results showed that although the target local administrative organizations in this study complied with the law on disclosure of fiscal and budgetary information, the local people still had limitations to access this kind of information. As the fiscal and budgetary information was complicated and difficult to understand, the utilization of this information for participatory decisions was limited. However, if the local people are more encouraged to access the fiscal and budgetary information, it will strengthen public participation in participatory planning and budgeting.