Abstract

This study aims at examining the effectiveness of budgetary controls on budget execution in Zanzibar. The proper linkages between public resources and its management through service delivery are the key to success of any government. The study adopted descriptive research design in which primary data was collected by the use of questionnaire. More over the study used a stepwise approach to generate model, where regression model was used to analyze the degree of the relationship between budgetary control and the extent to which it contribute to the performance of budget in Zanzibar. The results reveals that a budgetary control as perceived by various respondents is effective on the basis of planning and budgeting, monitoring and control, analyzing and feedback and thus concluded to have a positive relationship with budget performance. Based on the study, it is recommended that management should be ready to participate in budget execution process in order to remove the existing challenges.

Highlights

  • In any nation budgets are part of national and management control instrument designed to promote efficient use of resources and providing support for other critical functions

  • It is concluded in this study that budgetary controls during the budget execution in Zanzibar is perceived to be effective

  • It is established that budget execution is ineffective and ineffectiveness does not emanate from poor budgetary controls, but it is a result of failure to receive all the funds budgeted for and deviations which are caused by orders from top management

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Summary

Introduction

In any nation budgets are part of national and management control instrument designed to promote efficient use of resources and providing support for other critical functions. Budgets shows how Government entities plan for the spending of finite public resources. National budget serves as an important tool for resource mobilization, allocation, fiscal and economic management. It is an economic tool for facilitating and realizing the vision of government in a given fiscal year, and if a national budget is to serves as an effective tool in public sector, proper linkages and management of all the stages of budgeting is necessary. Organizations use different procedures and techniques for controlling and planning functions. Many organizations consider budgetary control as the base for internal financial management which gives a wide management platform and lead to effective resource allocation. Organizations have been using budgetary control as it has contributed in maintaining the budget process and control the allocation of resources. With a minimum budget control, an organization can compare actual performance and budget and determine any differences followed by proper correction through budget control

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