Analysis of the relatsionship between Planning and Budget Execution in the Municipalities of Costa Rica

Abstract

The objective of this study is to analyze the incidence that planning has on budget management in the municipalities of Costa Rica, given that they present
some deficiencies such as: low-qualified human resources, planning problems, centralism in political and financial practices, and low budget execution.
To achieve what was proposed, a descriptive investigation was carried out, taking as a reference the database of the Municipal Management Index 2018,
of the Comptroller General of the Republic of Costa Rica.
As a result, it is obtained that in the variable Obligations for financing, there is a positive relationship between compliance with the operating plan and
budget execution. Additionally, there is a positive relationship between the participatory budget and budget execution. Otherwise, the municipalities with
a regulatory plan cause a negative effect of -8.99 on financing obligations.
In the variable Investment in local projects, the municipalities that comply with the operational plan have a negative effect (-0.89%) on the investment in local
projects. There is also a negative relationship between the participatory budget (-0.89%) and budget execution. There is a positive relationship between the
existence of regulatory plans and budget execution, with a positive effect of 4.3% on investment in local projects.
It is concluded that, , the operational plan and participatory budget compliance variables positively affect financing obligations, but in local project investments, both have a negative effect.