Abstract:
The purpose of this study is to examine budget utilization and its’ determinants in West Shoa
Administrative Zone. To accomplish this objective, descriptive research design was adopted. The
study employed both qualitative and quantitative approach. From 22 districts, ten districts offices
were selected by census sample method. The study used the response from 80 employees directly
related to budget preparation, implementation and controlling. Ten-year (2012-2021) data were
collected from secondary sources to analysis trend budget utilization .The trend analysis results
shows there is gap between adjusted budget and actual expenditure not linear increased from
year 2010 - 2021 year and fluctuation of adjusted budget utilization in West Shoa Zone. Also
primary data were collected through questionnaire and interviews. The collected data was
analyzed by using both descriptive, ordered logistic regression model and ANOVA testing.
ANOVA analysis indicates there is statistically difference in budget underutilization from one
district to other districts in West Shoa Zone. For this study, five independent variables were
identified including auditing and monitoring, tax collection capacity; fund diverting, staff
capacity and working culture of the organization in regression model. Therefore; based on output
of STATA Version 13 the variables including tax collection capacity, fund diverting, and working
culture of the organization affects budget utilization significantly. The remaining two variables
staff capacity and auditing and monitoring are insignificant at p>0.05. Then, the researcher
recommended that West Shoa Zone finance and cooperation zone should understand the
contributions of these three variables which affect budget utilization and provide effective
training on them for his employees in effective and efficiency time manner.
