“…Therefore, a new mayor and/or majority coalition can be expected to make large changes to the initial budget. This is also consistent with Forrester and Mullins (), who found that rebudgeting is encouraged by changed priorities and the willingness to counteract previous decisions. Hypothesis 3 : Rebudgeting is affected by organizational features.…”
Section: Previous Studies and Hypothesis Formulationsupporting
confidence: 87%
“…Compared with the initial budgeting process, budget execution and rebudgeting have received much less attention. The few existing studies on rebudgeting, moreover, have predominantly adopted an exploratory and descriptive stance (Dougherty, Klase, and Soo ; Forrester and Mullins ). They usually have investigated the importance and magnitude of budget revisions, the players who initiate the revision process or are otherwise involved, and the contingencies, events, and reasons that are more likely to cause it at the local and state levels.…”
Section: Previous Studies and Hypothesis Formulationmentioning
confidence: 99%
“…As to the players involved and their roles and motivations, Forrester and Mullins () carried out a survey of 91 U.S. central cities. According to their results, rebudgeting is generally less visible than budgeting to the general public and is driven more by administrative than political bodies.…”
Section: Previous Studies and Hypothesis Formulationmentioning
confidence: 99%
“…Finally, a large body of literature exists on the external factors that affect organizational behavior in the public sector. The demographic and cultural features of the community, for instance, can play a significant role (Brudney and Selden ; Forrester and Mullins ; Greenwood, Hinings, and Ranson ; Lu and Facer ). Bingham () recalled that the socioeconomic characteristics of the community have been studied by many economists and political scientists as factors affecting decision making and city policies.In the Italian context, significant regional differences exist across a wide range of dimensions, including local government openness to public sector reforms (Putnam, Leonardi, and Nanetti ) and accounting innovations (Anessi‐Pessina, Nasi, and Steccolini ).…”
Section: Previous Studies and Hypothesis Formulationmentioning
confidence: 99%
“…So far, however, it has been the subject of remarkably little research. In addition, the few existing studies (Dougherty, Klase, and Soo ; Forrester and Mullins ) have predominantly been exploratory and descriptive.…”
The literature on budgeting in the public sector has traditionally focused on the annual budgetary process. Much less attention has been paid to rebudgeting—that is, what governments do to revise and update their budgets during the fiscal year. Because of its potentially large impact on appropriations, rebudgeting seemingly deserves more attention than it has been granted so far. This article uses data from a sample of Italian municipalities to test hypotheses on the main drivers of budget revisions. According to the results, rebudgeting is strongly affected by the degree of incrementalism in the initial budgeting process, as well as by several internal and external determinants, such as political variables, organizational features, financial conditions, and the local socioeconomic environment.
“…Therefore, a new mayor and/or majority coalition can be expected to make large changes to the initial budget. This is also consistent with Forrester and Mullins (), who found that rebudgeting is encouraged by changed priorities and the willingness to counteract previous decisions. Hypothesis 3 : Rebudgeting is affected by organizational features.…”
Section: Previous Studies and Hypothesis Formulationsupporting
confidence: 87%
“…Compared with the initial budgeting process, budget execution and rebudgeting have received much less attention. The few existing studies on rebudgeting, moreover, have predominantly adopted an exploratory and descriptive stance (Dougherty, Klase, and Soo ; Forrester and Mullins ). They usually have investigated the importance and magnitude of budget revisions, the players who initiate the revision process or are otherwise involved, and the contingencies, events, and reasons that are more likely to cause it at the local and state levels.…”
Section: Previous Studies and Hypothesis Formulationmentioning
confidence: 99%
“…As to the players involved and their roles and motivations, Forrester and Mullins () carried out a survey of 91 U.S. central cities. According to their results, rebudgeting is generally less visible than budgeting to the general public and is driven more by administrative than political bodies.…”
Section: Previous Studies and Hypothesis Formulationmentioning
confidence: 99%
“…Finally, a large body of literature exists on the external factors that affect organizational behavior in the public sector. The demographic and cultural features of the community, for instance, can play a significant role (Brudney and Selden ; Forrester and Mullins ; Greenwood, Hinings, and Ranson ; Lu and Facer ). Bingham () recalled that the socioeconomic characteristics of the community have been studied by many economists and political scientists as factors affecting decision making and city policies.In the Italian context, significant regional differences exist across a wide range of dimensions, including local government openness to public sector reforms (Putnam, Leonardi, and Nanetti ) and accounting innovations (Anessi‐Pessina, Nasi, and Steccolini ).…”
Section: Previous Studies and Hypothesis Formulationmentioning
confidence: 99%
“…So far, however, it has been the subject of remarkably little research. In addition, the few existing studies (Dougherty, Klase, and Soo ; Forrester and Mullins ) have predominantly been exploratory and descriptive.…”
The literature on budgeting in the public sector has traditionally focused on the annual budgetary process. Much less attention has been paid to rebudgeting—that is, what governments do to revise and update their budgets during the fiscal year. Because of its potentially large impact on appropriations, rebudgeting seemingly deserves more attention than it has been granted so far. This article uses data from a sample of Italian municipalities to test hypotheses on the main drivers of budget revisions. According to the results, rebudgeting is strongly affected by the degree of incrementalism in the initial budgeting process, as well as by several internal and external determinants, such as political variables, organizational features, financial conditions, and the local socioeconomic environment.
This paper investigateswhich factors affect revenue over-budgeting in the local government,considering budgetary, political, and institutional determinants. It appliesdynamic panels analysis to data from Portuguese municipalities between 2005 and2017. Regarding budgetary arrangements, over-budgeting has implications forseveral years, taking up to three years to dissipate. The difference between budgetedrevenues and the ones collected in the previous year is a good predictor thatrevenue is overestimated. The ratio of own-source over total revenue isdirectly related with over-budgeting; however, this effect comes from the municipality'swealth. About political factors, municipal Executives with political majoritiesand in electoral years are more prone to over-budget; however, ideology does not seem to be important. Asfor institutional arrangements, participationin any debt restructuring program is inversely related to over-budgeting, whileexcessive debt does not seem to play any role. Overall, the only mechanismwhich reduces over-budgeting misbehavior is external control.
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