Determinants Of Public Sector Capital Budget Utilization: The Case Of Liban Jawi District, West Shewa Zone, Oromia Region, Ethiopia

Abstract

A budget is a key management tool for planning, monitoring, and controlling the finances of a projector organization. It estimates the income and expenditures for a set period of time for your project or organization. The overall objective of this study was to investigate the determinants of public sector stakeholders on the effectiveness of capital budget utilization in Liban Jawi, district of west Shoa Zone. The study employed mixed research method applying the quantitative and qualitative data collection with their respective analysis of descriptive and multiple regression analyses. The sample of 192 was drawn by using stratified sampling coupled by Yamane formula. Accordingly, the study founding indicated that from the predictive variables selected, that are stakeholders participation in capital budget planning, project managers commitment and accountability, inflation and project complexity towards capital budget utilization as independent variables, it was revealed that inflation, project complexity due to lack of peace and security around the project area and low commitment and accountability exist among the project managers and public officials were identified as the major determinants of the budget utilization with strong significance levels. Lastly from the overall study findings it was recommended that within the study area, to curb and improve the capital budget utilization the stakeholder’s better go extra mile beyond having the regulatory framework alone, since as the project exposed to dalliance increase the exposures to inflation and all other identified determinants or predictor variables. Based on the findings of the study it is recommended based on thematic findings of predictive variables selected to reveal the relationships between variables to assess the major determinants of capital budget utilization in the study area