Digital budget supervision governance and local government fiscal transparency

Fiscal transparency of local governments is a crucial factor in enhancing government credibility and advancing governance modernization and integrity. This study examines the impact of digital budget supervision governance on local government fiscal transparency, using a sample of 288 prefecture-level cities in China from 2013 to 2024. The results indicate that digital budget supervision governance significantly improves the fiscal transparency of prefecture-level governments. Mechanism tests reveal that digital budget supervision governance enhances fiscal transparency by reducing government intervention. The moderating effect analysis shows that a higher level of marketization further amplifies the positive impact of digital budget supervision governance on fiscal transparency. The heterogeneity analysis suggests that the effect of digital budget supervision governance on fiscal transparency is more pronounced in regions located northwest of the Hu Huanyong Line and in economically underdeveloped areas. This study provides theoretical foundations and policy implications for optimizing fiscal governance and promoting regional coordinated development.