Assessment of Budget Preparation, Utilization and Evaluation in the Case of Negelle Borena Town Municipality, Oromia Region, Ethiopia

Dejene Taye,

doi:10.34104/ijma.021.028042

Abstract

This study was conducted on the assessment of budget preparation, utilization, and evaluation in the case of Negelle Borena Town (NBT) Municipality. To the best of the researcher’s knowledge, there is no document that reports a study on the probable causes that may hinder the preparation and utilization of budgeting in the NBT Municipality. This is a major motivation to carry out this study. Thus, the general objective of the paper is to assess the budget preparation, utilization, and evaluation of the NBT Municipality Nine out of seventeen budget holders were taken and ten key informants were selected from each budget holder with a total of 94 respondents. In addition, five budget experts were included in collecting primary data through a structured questionnaire, and five more finance budget experts involved. More of the qualitative analyses demonstrate that there was no accountability in budget utilization, there is no market-oriented cost estimation practice. Lack of adequate and experienced budget experts is another issue that contributes to worsening the problems and also there is no evidence-based evaluation mechanism in the budget utilization at each level of the budget holder. Therefore, in order to improve budget preparation and utilization in NBT Municipality, it calls for taking any possible and remedial actions in the subsequent years.

Highlights

From the perspectives of public policy and budgetary process, the Municipality shares many of the characteristics of other sectors of government
ANALYSIS AND FINDINGS: In this chapter the data collected from various sources related with budget preparation and utilization of Negelle Borena Town (NBT) Municipality offices has been discussed
Characteristics of the respondents - The respondents used in this research paper are classified into three types namely: budget users selected from samples of all the budget holders, budget experts of Planning and Budget Department and Budget experts from NBT Municipality Finance and Economic offices

Summary

Introduction

From the perspectives of public policy and budgetary process, the Municipality shares many of the characteristics of other sectors of government. This means that the citizens of any country were benefit from a Municipality that is subject to the same broad set of rule and procedures the tare applied to other sectors. Contemporary restudies show that governments which have effective fiscal rules have stronger budget discipline. These rules focus on formal and informal procedures for preparing and utilizing the budget (Bari et al, 2021; Schick, 2007). The inadequacy of hard budget restraints on decision makers at the planning and budget formulation stage of the cycle leads to inadequate funding of operations, poor expenditure control and unpredictability in the

Methods

Results

Conclusion