Unveiling the Green Tapestry: Exploring the Influence of Green Budget Tagging on the Nexus of Fiscal Policy Sustainability and Green Budgeting Practices in Metropolitan Municipal and District Assemblies in Ghana Shaibu Awudu (a*), Ayu Krishna Yeliawati (b) and Maya Sari (b)
Faculty of Economics and Business Education, Universitas Pendidikan Indonesia (UPI), Jl. Dr. Setiabudhi No. 229 Bandung.
Abstract
This study investigates the moderating effect of green budget tagging on the relationship between green budgeting practices and fiscal policy sustainability in Metropolitan, Municipal, and District Assemblies (MMDAs) in Ghana. The research employs a quantitative approach and a descriptive survey design. Participants from the budgeting departments, finance departments, and environmental departments of the 260 MMDAs in Ghana are included in the investigation. A sample size of 156 MMDAs was obtained using simple random and data was analyzed through multiple regression analysis, to examine the relationships between variables and test the re-search hypotheses. The findings revealed that climate change adaptation and mitigation, waste management, renewable energy development, and natural resource conservation positively influence fiscal policy sustainability. However, sustainable transport does not have a significant effect on fiscal policy sustainability. The findings also indicate negative interaction effects between green budget labeling and climate change adaptation and mitigation, waste management, renewable energy development, and natural resource conservation, suggesting that the combined effects of these variables with green budget tagging are detrimental to fiscal policy sustainability. The net effects, climate change adaptation and mitigation, waste management, renewable energy development, and natural resource conservation positively contribute to fiscal policy sustainability. Additionally, attention should be given to the negative interaction effects between green budget tagging and certain variables to mitigate any potential adverse impacts on fiscal policy sustainability. The study contributes to the understanding of the relationship between green budgeting practices and fiscal policy sustainability, providing insights for policymakers and practitioners in Ghana and similar contexts.
Keywords: Green budget practices, green budget tagging, sustainable fiscal policy.
