5. Concluding
discussion One argument for this study was the general lack of studies on the relationship between budget control and budget deviations in public sector organizations. Therefore, an important finding of our study is its support of our hypothesis about tight budget control in public sector organizations. The effect of tight budget control on budget deviations is contingent upon the level of budget turbulence. More precisely, in situations when budgets for some reason expand or contract substantially, and when small budget deviations are a priority, tight budget control is an effective device. By studying and finding evidence for positive and intended effects of tight budget control, this study adds to the budget literature, which is biased towards focusing on the dysfunctional effects of tight budget controls (Hartmann, 2000; Marginson and Ogden, 2005). This knowledge is important since the public sector is still an area in which budgets and budget controls are paramount in many areas and where economic turbulence from time to time makes public sector organizations face control challenges. The ability to control budget deviations is crucial for public sector organizations and our results clearly speak to the managerial relevance of implementing tight budget control for cost control purposes when facing budget turbulence. The results, however, equally suggest that tightening the budget control system in situations of low budget turbulence does not lead to better cost control and thus challenge the idea that tight budget control is universally effective when precision in budget compliance is important.
