Abstract:
This research aimed to investigates the critical factors influencing budget management performances in selected districts of the West Shewa Zone, Oromia Regional State, Ethiopia. Focusing on budget performance challenges, the study targets government employees across four districts, the West Shewa Zone Bureau of Finance, and one town administration, comprising a simple random sampling sample of 184 respondents. By administering detailed questionnaires to senior budget directors and department experts, the study employs both descriptive and explanatory research designs to interpret the gathered data. Utilizing SPSS version 26, the analysis incorporates descriptive statistics, Pearson correlation, ANOVA tests, and multiple linear regression models. The research identifies six key explanatory variables: employee competency, government regulations, organizational commitment, motivation, work environment, and institutional capacity. Findings indicate that employee competency, government regulations, motivation, work environment, and institutional capacity significantly and positively impact budget management performance. Conversely, while organizational commitment is positively associated with budget management, its impact is statistically insignificant (p>0.05). The study recommends strategic actions for the West Shewa Zone Bureau of Finance and district finance bureaus, including hiring competent staff, ensuring regulatory compliance, providing motivational incentives, fostering a conducive work environment, and strengthening institutional structures to enhance budget management performance
