Assessing Good Governance Through Financial Execution: A Comparative Analysis of the Financial Supervision Board (Cft)’s Comments on the Island Budget Execution Reports of the Public Entity of Bonaire (2018-2024)

Abstract

This study explores the intersection between financial execution and governance quality in the Public Entity of Bonaire, analyzing the Financial Supervision Board’s (Cft) evaluations of budget execution reports from 2018 to 2024. Through a mixed-method approach integrating quantitative and qualitative analyses, the research identifies patterns in fiscal management, governance performance, and budget deviations, assessing their implications for administrative stability and financial oversight. A Pearson correlation analysis reveals a strong and statistically significant relationship (r = 0.879, p = 0.009) between budgetary discipline and governance effectiveness, highlighting that reduced financial deviations align with better governance outcomes. However, political instability in 2023—marked by an Island Council election in March and an Executive Council restructuring in October—exacerbated governance disruptions, leading to financial oversight failures in 2024. A comparative review of execution reports (UR1, UR2, UR3) from 2023 and 2024 further demonstrates persistent deficiencies in commitment management, administrative efficiency, and fiscal transparency. Findings confirm that governance deterioration directly correlates with financial mismanagement. Without urgent fiscal reforms and strengthened oversight mechanisms, Bonaire risks continued governance instability. The study recommends enhancing budgetary discipline, reinforcing financial reporting, stabilizing governance structures, and ensuring adherence to Cft recommendations to restore financial integrity and institutional credibility in Bonaire’s public administration.