The relevance of budget transparency for development

This study aims to highlight the relevance of budget transparency in improving human development and fill the gap in the literature, which has traditionally considered the con- cept of development in economic terms. Here, development refers to levels of knowl- edge, the possibility of enjoying a long and healthy life and having a decent standard of living. Improving human development is the main point of interest in the assessment of public policy outcomes and this study is focussed on one specific policy, namely, bud- get transparency. By using a pool of 110 countries for the years 2008, 2010, 2012, 2015 and 2017, the empirical results demonstrate a positive effect of the open budget index on the human development index, suggesting that budget transparency is a good way to improve levels of human development. These findings are essential not only for academic debate but also for practitioners because they show transparency as a relevant tool to improve human development.