Researchers have recently taken an interest in the accumulation and use of fund balances by local governments. Nevertheless, there is no consensus on the ideal percentage of savings governments should maintain to deal with unforeseen circumstances, and indeed little is known about the level of savings set aside by local governments. This situation raises questions about ethical and financial management practices of officials. This article discusses budgetary transparency through the lenses of utilitarian and Kantian ethical perspectives and examines three case studies that highlight the financial and political risks associated with the lack of transparency and the misuse of funds.
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