ABSTRACT
Budget transparency refers to the public availability of processes and actions related to the budget process. Since budget transparency will ensure public scrutiny, it is expected to contribute positively to fiscal performance by improving public financial indicators. In this study, the effect of budget transparency on fiscal performance was analyzed using the System Generalized Method of Moments for 21 developing countries of the Organization of Islamic Cooperation in the period 2006-2022. Since there is no consensus on the relationship between budget transparency and fiscal performance, different fiscal performance indicators are used as dependent variables in the study in order to evaluate fiscal performance from a wider range. And the Open Budget Index published by the International Budget Partnership was used for the budget transparency variable. The empirical findings of the study indicate that budget transparency positively affects fiscal performance. In this context, higher levels of budget transparency cause lower public debt, higher primary budget balance, higher tax revenues and public expenditure.