A public budget concentration index

Abstract

This paper aims to propose an index that identifies the concentration of resources throughout the execution of each budgetary term in the public sector. This exercise is done by evaluating the central national government institutions responsible for investing in strategic sectors for economic growth, which were named by the current government as locomotives for democratic prosperity. It is found that resource allocation at the end of each term is associated with budget lags in the preceding period. One explanation for this phenomenon is the contractual process of each institution of the State, which may be reflected in management dynamics that are repeated every period. On the contrary, there is a weak relationship with the budget magnitude allocated to each institution at the beginning of each year.