Home⇛International Journal of Multidisciplinary: Applied Business and Education Research⇛vol. 6 no. 9 (2025)

Examining Transparency and Efficiency in Local Government Unit Disbursement Using Publicly Available Data from Cebu Province, Philippines

Michel A. Salvador | Peter G. Narsico | Joel L. Estudillo | Jinky R. Delantar | Lalaine O. Narsico

Discipline: Finance

 

Abstract:

This study examines the relationship between fiscal transparency and disbursement efficiency in a local government unit (LGU) in Cebu, Phil-ippines, using publicly available 2024 fiscal data. Transparency is de-fined as the percentage of actual quarterly disbursement relative to the expected amount—25% of the annual budget per quarter—while effi-ciency measures the proportion of funds utilized. Both variables are de-rived from disbursement percentages, contributing to the strong posi-tive correlation and unusually high regression coefficients observed. Linear regression analyses across four quarters reveal a consistent, sta-tistically significant positive relationship between transparency and ef-ficiency. Unstandardized coefficients (B) rise from 0.25 in Quarter 1 to 0.57 in Quarter 4, with Quarter 4 showing the highest standardized beta (β = 10.19, R² = 0.985). These results indicate that transparency in-creasingly influences efficiency as fiscal pressures mount toward year-end. The findings affirm transparency as a critical governance tool that aligns planned and actual disbursements to improve budget execution. Practically, enhanced transparency fosters accountability, strengthens fiscal discipline, and supports evidence-based resource allocation, which are vital for effective LGU policy and responsive public service delivery. However, the close operational linkage between transparency and efficiency warrants cautious interpretation of coefficient magni-tudes. The study recommends performance-informed budgeting, im-proved monitoring, and inter-agency coordination to balance transpar-ency with execution flexibility, optimizing resource use and governance outcomes in decentralized fiscal systems.



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