ASSESSMENT OF BUDGET PREPARATION, UTILIZATION, AND EVALUATION PRACTICES IN BURAYU TOWN MUNICIPALITY, OROMIA REGION

• ABSTRACT

This study was conducted on the assessment of budget preparation, utilization, and evaluation practices in the case of Burayu Town 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 Burayu Town 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 Burayu Town Municipality. Ten budget holders were selected, and ten key informants were selected from each budget holder, for a total of 86 respondents. In addition, five budget experts were included in collecting primary data through a structured questionnaire, and five more finance budget experts were involved. More of the qualitative analyses demonstrate that there was no accountability in budget utilization, that there was any 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 Burayu Town Municipality, it calls for taking any possible and remedial actions in the subsequent years.

Keywords: Budget, Budget Preparation, Budget Utilization