BLOCKCHAIN APPLICATIONS AS A TOOL TO REDUCE FINANCIAL CORRUPTION IN BUDGET PREPARATION AND IMPLEMENTATION PROCESSES

Abstract

This research seeks to examine the contribution of blockchain technology applications to mitigating financial corruption in the formulation and execution of government budgets, with particular emphasis on how the inherent characteristics of this technology strengthen financial transparency and enhance the effectiveness of monitoring public expenditure. The study employs a descriptive-analytical methodology through an extensive review of the scholarly literature concerning blockchain applications in public financial management and anti-corruption initiatives. In addition, it evaluates a number of international cases in which this technology has been integrated into public budget administration. The study further develops a conceptual hypothetical framework that explains the relationship between blockchain applications as the independent variable and the reduction of financial corruption in budget preparation and execution as the dependent variable. Evidence from prior studies suggests that the integration of blockchain technologies into government financial systems significantly improves transparency and accountability, minimises opportunities for manipulation of financial records, and thereby enhances the efficiency of managing public resources. This study offers a contemporary analytical perspective on the significance of advanced digital technologies in addressing financial corruption. It also provides practical guidance for policymakers regarding the development of digital infrastructure within public institutions, alongside the formulation of supportive policies and legislative frameworks for the adoption of blockchain-based systems in government budgeting processes to strengthen financial integrity and reduce both administrative and financial corruption.