Abstract: Fiscal budget transparency is playing an important role in the supervision and restriction of public power; therefore, it can have a significant impact on the corruption of the local officials. In the context of the new normality of anti-corruption and the budget system reform, this paper makes an empirical study by constructing provincial panel data. The results indicate that the fiscal budget transparency at provincial level has a significant negative effect on the degree of corruption of local officials. In the dynamic model, on average, if the value score of fiscal budget transparency increases by 10 points, the number of the corruption cases of per ten thousand public servants will reduce by 0.85, which is equivalent to 3.5% decline of the degree of corruption. Therefore, the new“Budget Law” should be taken as an opportunity and some measures, such as amending and improving the related laws, should be adopted, so as to improve the levels of fiscal budget transparency of governments at all levels and make full use of the corruption governance effect of fiscal budget transparency.

Key words: fiscal budget transparency, budget reform, official corruption, corruption governance