THE FUTURE OF PUBLIC SECTOR BUDGETING: HOW DIGITAL TRANSFORMATION AND BLOCKCHAIN ARE IMPROVING TRANSPARENCY AND REDUCING CORRUPTION

<p>This study explores the transformative impact of digital transformation and blockchain technology on public sector <br>budgeting, focusing on their roles in enhancing transparency and reducing corruption. The research employs a mixed-method <br>approach, utilizing secondary data analysis from government reports, academic literature, and case studies from 2020 to 2024. <br>The findings reveal a strong correlation (r = 0.999, p < 0.001) between the transparency index and the corruption perception index, <br>demonstrating that digital tools significantly improve financial oversight. Regression analysis confirms that every million-dollar <br>investment in digital transformation increases transparency by 0.82 points (p < 0.001), while blockchain adoption correlates <br>negatively with fraud cases (r = -0.993, p < 0.001). The chi-square test (χ² = 88.87, p < 0.001) establishes blockchain as a critical tool <br>for fraud reduction, cutting recorded fraud cases by 53% between 2020 and 2024. Despite technical and regulatory challenges, <br>strategic investments in digital infrastructure and legal frameworks can maximize these technologies’ potential. The study <br>recommends phased adoption, capacity building, and enhanced cybersecurity measures to ensure sustainability. These findings <br>contribute to public finance management by offering empirical evidence on the role of emerging technologies in fostering <br>transparency and accountability in government budgeting. </p>