Public Sector Accounting and Budgeting

Public Sector Accounting and Budgeting

The role of artificial intelligence in improving performance-based budgeting with an integrated reporting approach in the public sector

Document Type : Review Article

Author
Amir Ata Alizadeh
M.Sc. Department of Accounting, Seraj Institute of Higher Education, Tabriz, Iran
10.22034/psab.2025.217337
Abstract
In the era of digital transformation, governments and public institutions face complex challenges in managing financial resources and budget allocation. One of the innovative approaches in this field is performance-based budgeting, which emphasizes the evaluation of outputs and the economic and social impacts of resource allocation. In this context, artificial intelligence serves as a powerful tool, enabling the analysis of financial and non-financial data, forecasting trends, and optimizing budgetary decision-making. Additionally, integrated reporting, as a novel approach, enhances transparency and accountability of public organizations by combining financial and non-financial information. When combined with AI-based technologies, this approach can improve the accuracy and speed of reporting, allowing managers to make decisions based on real-time data. This study examines the role of artificial intelligence in optimizing performance-based budgeting and enhancing transparency through integrated reporting. It demonstrates that this technology can lead to optimal resource allocation, reduction of financial corruption, improved oversight, and increased public trust in the performance of governmental institutions. The findings of this research can provide new pathways for strategic decision-making in public sector financial management.
Keywords
Artificial intelligence
Performance-based budgeting
Integrated reporting
Public sector

Subjects

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  • Receive Date 15 December 2024
  • Revise Date 15 February 2025
  • Accept Date 03 March 2025