Abstract:
The purpose of this study is to determine factors affecting budget utilization in Burayu City Finance and Economic development office. To accomplish this objective Descriptive research type was adopted. The study was employed both qualitative and quantitative/mixed/ approach. The study was used a census survey whereby the entire population included since the number of respondents were very small. The study used the response from 82 employees directly related to budget utilization. Five-years (2011-2015 E.C) data was collected from secondary sources and also primary data was collected through questionnaire. The researcher used close end and open ended questionnaire to collect data to come up with good raw data for the study. The Data obtained from respondents were entered into SPSS database application for analysis. For this study, five independent variables were identified including delay of budget proclamation, staff capacity, budget monitoring, inflation rate and budget planning. Based on the secondary data the trends of budget utilization of Burayu City shows fluctuation from year to year and the approved budget is not utilized properly. The study concluded that the budget utilization of Burayu city finance and economic development office was affected by delay of budget proclamation, budget monitoring, staff capacity, inflation rate and budget planning. So based on the result obtained, due attention should be given by Public sectors head, public sectors management committee and all other concerned staff during budget utilization. The researcher recommended that the government should set the rules for the underutilization of budget because annually the underutilized budget is big asset which can do a valuable work for the society
