Digital Transformation of Government Accounting and Its Impact on the Efficiency of Public Budgets: A Comparison Between the Iraqi and Gulf Experiences

Abstract

Purpose: This study examines the impact of the digital transformation of government accounting on the efficiency of public budgets through a comparative analysis of Iraq and the Gulf countries. The research evaluates whether adopting digital government accounting systems contributes to higher levels of public budget efficiency by improving financial transparency, strengthening financial control, enhancing the quality of accounting information, and supporting more effective management of public resources. Design/methodology/approach: A quantitative research design was employed. Primary data were obtained through a structured questionnaire distributed to a large sample of employees at Qimat Al-Tawasul Company in Najaf, Iraq. The proposed conceptual model was assessed using Partial Least Squares Structural Equation Modelling (PLS-SEM), allowing the direct relationships between digital transformation in government accounting and public budget efficiency to be examined. Findings: The empirical evidence indicates that digital transformation in government accounting has a positive and statistically significant influence on public budget efficiency. The implementation of digital accounting systems was associated with improvements in the accuracy and reliability of financial information, greater transparency in financial reporting, stronger oversight mechanisms, and more efficient budget administration. The comparative assessment also highlights that several practices adopted within Gulf countries provide valuable institutional and technological reference points that may facilitate the continued development of government accounting systems in Iraq. Practical Implications: The findings indicate that strengthening digital infrastructure, expanding the integration of government accounting information systems, and improving the digital competencies of public sector personnel are important priorities for enhancing financial governance. These initiatives have the potential to increase accountability, improve the quality of financial management, and support more efficient administration of public budgets. Originality/value: This study extends the literature on digital government accounting by providing empirical evidence from Iraq while incorporating comparative insights from Gulf countries. The findings contribute to the understanding of how digital transformation can improve public financial management and offer practical guidance for policymakers and public institutions seeking to modernise government accounting systems and enhance public budget efficiency.