Factors Affecting Public Sectors Budget Utilization: In Case Of Some Selected Woredas of West Shoa Zone, Oromia Regional State, Ethiopia

Abstract

This study was conducted in some selected Woredas in West shoa zone of Oromia regional state regarding identifying the factors affecting public sectors budget utilization. The aim of the study was to evaluate the trends of public sectors budget utilization, to examine the internal and external factors affecting public sectors budget utilization in the study area. The descriptive and explanatory research designs were employed. In Addition to that mixed research approach was used and primary data collected from all staff of selected woredas of finance office by simple random sample techniques while head of finance office and team leader of finance selected by purposive sample techniques for purpose of interview questionnaire response from each woredas additionally secondary data was collected from finance and Economic cooperation of IBEX database for past seven year’s periods. Both descriptive and inferential analyses were made with the help of SPSS version 26. Results of the study indicated that decentralization of budget, transparency and accountability, commitment of management and inflation rates are negatively affecting budget utilization because of from these variables some of it not exactly exercised in the study area but organizational hierarchy, communication system, approval of budget and awareness of citizen positively affecting budget utilization in the study area. Based on the finding of the study, recommendations were also forwarded; the concerned bodies have to follow-up and taking auditing activities in order to avoid the internal factors affecting budget utilizations including Develop strategies to mitigate the impact of external factors, to inform targeted interventions and policy reforms aimed at addressing negative factors influencing budget utilization, and more give attention on providing proper budget planning and prioritize in capacity building in quality of manpower within sectors and enhance collaboration among Woredas councils and stakeholders also give feedback on weakness and measurements of participation on budget planning and utilization.