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.
