Enhancing budget policy alignment: Insights from local government practices

Effective budget policy alignment is crucial for ensuring that strategic objectives are translated into actionable financial plans. This literature review explores the roles of public transparency and human resource competence in achieving alignment within local government financial practices. Drawing on institutional and agency theories, the study highlights transparency as a mechanism for fostering accountability and human resource competence as a driver for operationalizing strategic plans. Challenges such as symbolic compliance, fragmented planning, and political interference are identified as significant barriers. The review concludes with insights into the synergistic relationship between transparency and HR competence, offering recommendations for future research to advance governance practices.