Policy Credibility, Organizational Behaviour and Public Financial Management in U.S. Federal Institutions: Implications for Economic Outcomes and Global Leadership

Abstract

Credibility of policy is very essential in institutional effectiveness, fiscal discipline and economic stability especially in advanced economies where the quality of governance has a strong impact on economic performance. In the United States, a growing discussion on policy inconsistency, political polarization and administrative fragmentation has escalated debate of the ability of the federal institutions to continue delivering effective management of the financial affairs of the people and global economic leadership. This paper examines the linkage between policy credibility, organizational behaviour in the U.S. federal institutions and the financial management of the populace, especially on its consequence to economic performance and international economic policy influence. The Preferred Reporting Items of Systematic Reviews and Meta-Analyses Extension of a Scoping Review (PRISMA-ScR) was used in order to conduct a systematic scoping review. The overall search in Scopus, Web of Science, ScienceDirect, JSTOR and Google Scholar helped to identify 1,320 publications, out of which 52 peer-reviewed articles satisfied the inclusion criteria and were incorporated into the synthesis. Three major themes are found. To begin with, effective and reliable policy structures go hand in hand with better public financial management results. Second, financial problems include institutional difficulties, like predicting delays, budgetary disputes, and coordination loopholes that undermine fiscal control and credibility of the policies. Third, organizational behaviour in the system of federal institutions, such as stability of leadership, bureaucratic professionalism, and coordination among agencies, has a critical mediating effect in the policy implementation and fiscal performance. The general observation of the study is that sustainable fiscal governance and sustained global economic leadership are not merely limited to the formulation of a formal policy framework but also on the institutional credibility and appropriate organizational behaviour of the public institutions.