Budgetary planning and budgetary performance in local Governments in Uganda: a case study of Soroti District local Government.

Abstract

ABSTRACT The aim of this study was to examine the relationship between budgetary planning and budgetary performance in Local Governments in Uganda, taking Soroti District Local Government as a case study. It intended to achieve the following objectives: to investigate the relationship between budgetary participation and budgetary performance; to establish the relationship between budgetary control and budgetary performance and to examine the influence of budgetary coordination on budgetary performance in Soroti District Local Government. The study adopted a cross-sectional survey design. Quantitative and qualitative approaches were employed. Out of the total target population of 110, a total of 86 respondents were selected to participate in the study. These included budgetary committee members, Councilors and Clients. Both primary and secondary sources were used for data collection. Data collection instruments employed were questionnaires, documentary analysis and interviews. Data were analyzed using the Pearson correlation coefficient and Regression analysis, which were aided by the SPSS software. The research findings revealed that there is a strong positive relationship between budgetary coordination and budgetary performance by (Beta =.797), a strong positive significant relationship between budgetary control and budgetary performance of (Beta= .713) and a strong positive significant relationship between budgetary participation and budgetary performance by (Beta = .671). Staff who clearly understood their individual goals related to the organization can naturally be coordinated and connected with their work. Once they engaged in their work, it would be a direct contribution to the success of Soroti District Local Government and its’ employee productivity. They would even begin to find ways to work smarter and more efficiently. The study concluded that when employees are involved in budget planning, they will freely share essential information with other employees so as to improve performance, communication and loyalty to their Local District. They would further motivate their subordinates and increase job satisfaction. For budgetary control allows more effective planning and control of employee activities. It also creates an opportunity for District officials to incorporate knowledge into budget planning process and to ensure that budgetary coordination involves workers to operate as a team that performs set activities. After fixing the budget, monthly or quarterly meetings could be arranged annually to enable Local District authorities to give feedbacks to stakeholders on how budget plans have been performed. Upon reception of the feedbacks by stakeholders, staff would get more motivated to fix the budget across the board to include even low areas. The study recommended that Government should put more emphasis on involving a wide range of stakeholders including civil society representatives, business community, women, youth associations and vulnerable persons into district budgetary planning. Government should also involve stakeholders and others into monitoring budgetary planning during implementation of activities in the district. Involvement of all these people and organizations will ensure that decisions are made adequately for the benefit of stakeholders in the district. In the process, there should be controls in utilization of resources and other materials in order to minimize expenditures; and that budgets versus activity implementation should be coordinated with human resources in order to improve on the level of budgetary performance in Soroti District Local Government.