Abstract:
This study aimed to assess the effectiveness of budget in Ambo town, with a specific focus on budget preparation, implementation, and control in Ambo administration office and health centers. The study employed a mixed research approach, integrating both quantitative and qualitative methods to provide a comprehensive analysis. A descriptive research design was adopted to evaluate perceptions of key stakeholders and to identify practical challenges in financial processes within Ambo administration office and health center. Quantitative data were collected through structured questionnaires administered to finance personnel in the selected sectors, and analyzed using descriptive statistics such as mean scores and standard deviation. The findings revealed that respondents generally perceived the budgeting system as effective, particularly in areas of organizational leadership (mean=4.06), responsiveness to external economic conditions (mean=4.04), and budget control mechanisms (mean = 3.95). However, relatively lower scores were observed in budget implementation (mean = 3.74) and financial transparency (mean =3.70), indicating areas for improvement. Qualitative data gathered from Focus Group Discussions (FGDs) and Key Informant Interviews (KIIs) highlighted several constraints, including limited grassroots participation, inadequate data quality, delayed budget ceilings, inefficient procurement systems, and inconsistent application of monitoring mechanisms. Political interference and weak use of digital tools were also noted as barriers to effective financial management. The study concludes that while Ambo town’s administration office and health centers exhibits foundational strengths in governance and budget oversight, notable weaknesses persist in implementation efficiency and accountability. Recommendations include enhancing stakeholder engagement, adopting digital financial systems, decentralizing budget authority, and strengthening capacity building and accountability frameworks. These measures are expected to improve transparency, resource utilization, and service delivery outcomes in the administration office and health centers.
