Abstract:
The main purpose of this study is to assess the effectiveness of the budget preparation and utilization in case of selected Ambo town administration offices. The existing little research in the area of budget preparation and utilization has not been done in a comprehensive approach on Ethiopia. This is a major motivation to carry out this study. Thus, the general objective of the study is to assess the effectiveness of budget preparation and utilization in case of selected Ambo town Offices. To realize this, the study has been applied descriptive research design and used descriptive statistical tools to present, interpret and analyze data collected. Twelve main offices were taken with 211 respondents proportionally selected from each office in collecting primary data through structured questionnaire. Finally, the study recommends Ambo town administration to build effective linkage of strategic plan and budget, involving all staff or functions of the organization in budget preparation, engage all the organization key stakeholders in budget preparation decisions, recruit enough number budget and planning officers who have adequate knowledge and skill to prepare and plan budget effectively, the budget demand prepared by the office is should be based on approved plans and programs
