Budgeting and Performance of Local Governments in Western Region A Case Study of Ibanda District Local Government

ABSTRACT 

The purpose of the study was to investigate the impact of Budgeting on the performance of Ibanda District Local Government and The specific objectives of the study were;to establish the effect of Budget formulation on performance of Ibanda District Local Government,to determine the effect of budget implementation on performance of Ibanda District Local Government and to establish the effect of budget monitoring on the performance of Ibanda District Local Government. The study used a survey research design and data was collected from 45 employees of Ibanda district Local government. The findings of the study showed that budget formulation improves on the performance of local governments by 77.4% basing from the average index of 3,87. Except that 80% revealed that they don’t follow the legal framework in formulating the budget. The findings of the study show that budget formulation improves the performance of local governments by 83.8% basing from the average index of 4.l9.This backed by the fact that respondents agreed to all the statements that were used to measure this objective. Furthermore, the findings of the study revealed that budget monitoring improves the performance of local governments by 87.2% except that it was revealed that the district does not ensure proper budget monitoring. The study recommended that, the government should ensure that in the process of budget formulation, a legal framework is followed in order to formulate resourceful budgets, more emphasis should be put on budget implementation as the findings of the study revealed that it greatly improves the performance of local governments and that the district should ensure proper budget monitoring as this improves the performance.

TABLE OF CONTENTS

DECLARATION

APPROVAL

DEDICATION iv

ACKNOWLEDGEMENTS v

TABLE OF CONTENTS

LIST OF TABLES ix

LIST OF FIGURES

ACRONYMS AND ABBREVIATIONS xi

ABSTRACT

CHAPTER ONE 1

INTRODUCTION AND BACKGROUND 1

1.0 Introduction 1

1.1 Background of the study 1

1.1.1 Historical background 1

1.1 .2Theoretical perspective 3

1.1.3 Conceptual perspective 4

1.1.4 Contextual perspective 4

1.2 Statement of the problem 4

1.3 Purpose of the study 5

1.4 Specific objectives of the study 5

1.5 Research Questions 5

1.6 Scope of the study 6

1.6.1 Content scope 6

1.6.2 Geographical scope 6

1.6.3 Time scope 6

1.7 Significance of the study 6

1.8 Conceptual framework 7

1.10 Definition of Key Terms 8

CHAPTER TWO 9

LITERATURE REVIEW .,, 9

2.0 Introduction 9

2.1 Theoretical review 9

2 .1.1. Multiple theory of budget determination 9

2.2 Conceptual review 10

2.2.1 Budgeting

2.2.2 Performance 11

2.3 Related literature 12

2.3.lEffect of Budget formulation on the performance the performance of local governments 12

2.3.2 Effect of Budget implementation on the performance of local governments 14

2.3.3The effect of Budget monitoring on performance of local governments 15

CHAPTER THREE 18

METHODOLOGY 18

3,0 Introduction 18

3.1 Research Design 18

3.2 Study population 18

3.3 Sample size 18

3.4 Sampling Techniques and Procedures 19

3.5 Data Collection Sources 19

3.5.lPrimaryData 19

3.5.2 Secondary Data 19

3.6 Data Collection Methods 20

3.7 Research Collection Instruments 20

3.7.1 Questionnaire 20

3.8 Ethical consideration 20

3.9 Validity and Reliability 20

3.9.1 Validity 20

3.9.2 Reliability 21

3.10 Data Management 21

3.10.1 Data Processing 21

3.10.2 Data Analysis 21

3.11 Limitations and delimitations of the study 21

CHAPTER FOUR .22

DATA ANALYSIS, PRSENTATION AND INTERPRETATION 22

4.0 Introduction 22

4.1 Characteristics of respondents 22

4.1.1 Gender of respondents 22

4.1.3 Marital status of respondents 24

4.1.5 Working Experience 26

4.2: Effect of Budget formulation on the performance of local governments 28

4.3: Effect of Budget implementation on the performance of local governments 30

4.4 Effect of Budget Monitoring on the Performance of Local Governments 32

CHAPTER FIVE 34

DISCUSSIONS, CONCLUSIONS AND RECOMMENDATIONS 34

5.0 Introduction 34

5.1 Discussion of the findings 34

5.1.1 Effect of Budget formulation on the performance of local governments 34

5.1.2 Effect of Budget implementation on the performance of local governments 34

5.1.3 Effect of Budget Monitoring on the Perfonnance of Local Governments 35

5.2 Conclusions 35

5.1.1 Effect of Budget formulation on the performance of local governments 35

5.1.2 Effect of Budget implementation on the performance of local governments 35

5.2.3 Effect of Budget Monitoring on the Performance of Local Governments 35

5.3 Recommendations 36

5.3.1 Effect of Budget formulation on the performance of local governments 36

5.3.2 Effect of Budget implementation on the performance of local governments 36

5.3.3 Effect of Budget Monitoring on the Performance of Local Governments 36

REFERENCES 37

APPENDICES 39

APPENDIX A: QUESTIONAIRE 39