A Critical Review of Antecedents of Unauthorised Extra-Budgetary Expenditure: Application of Fraud Triangle Theory

Unauthorised extra-budgetary expenditures continue to pose threats to achieving and sustaining fiscal stability. It has resulted in budget overruns which have contributed to the rapid growth in government spending and borrowing pushing countries down toward an unsustainable economic path. It is agai...

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Bibliographic Details
Published in:African journal of business and economic research 2022-12, Vol.17 (4), p.311-341
Main Authors: Seidu, Baba Adibura, Opoku-Boahen, Ebenezer, Queku, Yaw Ndori, Boateng, Kwakye, Opoku-Boahen, Gloria
Format: Article
Language:English
Subjects:
and Consequences
Antecedents
Bibliometrics
Budget
Expenditures
Expenditures, Public
Finance
Fiscal policy
Fraud
Fraud Triangle Theory
Government spending
Off-Budget Expenditure
Political economy
Public debts
Unauthorised Extra-Budgetary Expenditure
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Summary:Unauthorised extra-budgetary expenditures continue to pose threats to achieving and sustaining fiscal stability. It has resulted in budget overruns which have contributed to the rapid growth in government spending and borrowing pushing countries down toward an unsustainable economic path. It is against these that this paper sought to critically review unauthorised extra-budgetary expenditure, antecedents, and consequences. The paper applied fraud triangle theory (FTT) to conceptualise antecedents of unauthorised extra-budgetary expenditure. Three factors have been identified as antecedents of extra-budgetary expenditures through a critical analysis of the fraud triangle theory. These are budgetary system failure, political economy, and community of economy. The paper sought papers from Google scholar, Google, and Scopus databases. Scopus database was used to conduct bibliometric analysis using the “Biblioshiny” function in the “bibliometrix” package subsequent to the development of the theoretical framework and manual search from Google and Google scholar to determine the depth of empirical studies on the subject. The paper proposed three propositions and a theoretical framework to guide future research. It was also revealed that unauthorised extra-budgetary expenditure limits the success of fiscal consolidation. It is also deleterious to budgetary gains and savings and will adversely affect the health of economies. It also pushes an economy toward a distressing economic path through high public debts to finance such expenditures.
ISSN:1750-4554
1750-4562
DOI:10.31920/1750-4562/2022/v17n4a14