Rebudgeting as an Adaptive Mechanism in Public Financial Management

Abstract

This study examines the essence and dynamics of budget implementation in the public sector, reflecting the government’s ability to adjust fiscal policies in response to evolving economic and social conditions. Rebudgeting, or budget revision, is understood as an adaptive mechanism essential for maintaining the effectiveness, efficiency, and relevance of fiscal policy amidst macroeconomic uncertainty. This literature review highlights the significance of accountability, transparency, and public oversight in ensuring that budget adjustments are conducted rationally, evidence-based, and aligned with genuine societal needs. Furthermore, the study identifies several key factors driving the necessity of budget revisions, including inaccuracies in revenue projections and fiscal dependence of local governments on intergovernmental transfers. Through a conceptual approach and critical analysis of relevant literature, the study emphasizes that the success of fiscal reform depends on the government’s ability to integrate fiscal flexibility with transparent, accountable, and results-oriented public financial governance.