Factors Affecting Effective Budget Management: The Case Of Holeta Town Selected Offices

Abstract

The study focused to establish Factors Affecting Effective Budget Management The case area of Holeta town selected offices and it was guided by the following research objectives to establish the effect of public participation, staff competency, government regulations, and information technology on effective budget management. The problem that the study addressed was lack of effective management of the budget in the study area. The target populations were Holeta town finance and economic development office, Holeta town municipal audit office, Holeta town Administration office and Holeta town Revenue office while the available target populations were 133 and the researcher to take all the population as a sample by the application of census approach. The researcher collected data through administering questionnaires from the respondents currently working in their respective offices. Explanatory research technique was applied to analyze and interpret data that made it possible to draw conclusions on the factors affecting effective management of the budget in the selected offices. Analyzed data and findings were presented in tables. These were supported by SPSS which is statistical software version 23. The study established that there was a positive and significant relationship between the explanatory variables as tabulated and effective management of the budget in the town selected offices posting an R-Squared (R2) of 90.3%. The study therefore concluded that, public participation, employee competency and government finance regulations should be embraced since they established a significant positive relationship with the dependent variable. But there was a significant negative relationship between the Information Technology and effectiveness of budget management. The researcher recommended that to achieve success in effective management of budget in the study area; Holeta town selected office management should be advised to enhance the application of the variables under this study