HOW PUBLIC EXPENDITURE TRACKING SYSTEMS ARE IMPROVING BUDGET IMPLEMENTATION AND ACCOUNTABILITY IN DEVELOPING COUNTRIES

Public Expenditure Tracking Systems (PETS) play a crucial role in enhancing budget transparency and accountability in developing countries, where inefficient public spending and corruption lead to significant economic losses. This study examines the effectiveness of PETS in improving budget implementation from 2011 to 2015, focusing on their role in reducing financial mismanagement and ensuring that allocated funds reach their intended beneficiaries. The research employed a secondary data analysis approach, utilizing reports from global institutions such as the World Bank, IMF, and OECD. Statistical analysis revealed significant findings: the chi-square test confirmed discrepancies between budget allocation and utilization (χ² = 6.24, p = 0.044), regression analysis demonstrated a strong positive correlation between institutional capacity and PETS efficiency (r = 1.0, p < 0.001), and a t-test confirmed that digital tracking reduced misallocation rates by up to 57% in Kenya, 50% in Uganda, and 44% in Rwanda. These findings highlight the importance of PETS in enhancing fiscal responsibility, but also emphasize the need for stronger institutional frameworks, increased public participation, and further technological integration to maximize efficiency. The study recommends policy reforms to strengthen governance, expand digital tracking adoption, and encourage citizen engagement in budget monitoring. Future research should explore the role of artificial intelligence in automating PETS for enhanced transparency.