The Theoretical Relationship of Government Organizational Structure, Leadership, and Financing in Terms of Fiscal Budgeting and Their Applications

The corporatization of the government has resulted in the change of the government structure and leadership, and this change has a negative impact on the fiscal budgeting – from the sources of funds to expenditures, and the government financial management and accounting presentation. This change brings about the generalization and equalization of the government organizational structure, leadership, the fiscal budget, and financial presentation across sector, despite they are different in every aspect. However, the impact of the equalization or generalization of the government organizational structure and leadership has been an organizational and managerial dysfunctionality, leadership and democratic deficits, and a failing government worldwide. In terms of public finance, it causes the disappearance of sources of funds and an increase in government expenditures. The disappearing of sources of funds makes it difficult for the government to provide the goods and services to the citizens equally with high standard and quality and to meet the corporate government marketing message, a “professional government.” How can these conditions be remedied through the use theory in the application? Using the qualitative methodology, through a holistic perspective and phenomenological approach, this paper, first, discusses the theoretical relationship of government organizational structure, leadership and public finance, the causal effects of the change in the government and its negative impact, and the application of the theories to practice. Second, this paper discusses or proposes ways to remedy the negative impact of the change in the government by applying theory to practice and how the sources of funds can be recaptured to enable the government to survive as a legitimate institution to provide to its citizens what the market cannot provide. Chairman Mao once said, “Applying theory to practice is good for all works.” It raises the standard and quality of the goods and services, raises the quality and professionalism of the organization and its leadership, reduces social and economic exclusion, it is a good practice, produces more sustainable result, makes the tasks meaningful, and will result in a more democratic government.