Budgeting and Resource Utilization in The Local Governments of Bosaso, Somalia
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Date
2016-11
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Publisher
Kampala International University, Colleges of Humanities and Social sciences
Abstract
This study carried out an investigation on the role of budgeting on the utilization of resources in the local governments of Bosaso, Somalia. The objectives of the study were 1) to establish the influence of program budgeting in resource utilization, 2) to find out how zero budgeting affects resource utilization, and 3) to examine how performance budgeting affects resource utilization in the local governments of Bosaso, Somalia. The study employed descriptive cross-sectional study design which involved both quantitative and qualitative approaches. Using the quantitative approach, the study employed structured questionnaires containing three sections A, B and C. Section A dealt with demographic characteristics of respondents, B dealt with the budgeting process while C dealt with resource utilization. Qualitative data was collected by use of the interview guide. Out of a target population of 133, 100 respondents were identified as the sample size by use of the Slovene’s formula. Simple random sampling and purposive sampling techniques were used to identify the respondents to take part in the study. Analysis entailed frequencies, percentages, means, standard deviation, t statistic, ranks, and regression analyses. Findings suggested that program budgeting had a significant effect on resource utilization (R2= 0.656, F = 61.85). Zero-based budgeting was also found to significantly influence resource utilization of the institution (R2 = 0.423, F = 71.777). Finally, performance budgeting was found to have a marginal but significant influence in determining resource utilization at the local government in Bosaso (R2 0.039, F = 4.057). The study recommends inclusion of all stakeholders in budgeting decisions, according sufficient time to the budgetary process, and competent personnel to be allowed in budget refinements. It was established that Bosaso local governments did not do enough to use program budgeting in the best way possible. The fact that it was observed to be lowly employed by the local governments made it hard for the institutions to manage their resources especially allocating and utilizing their finances. The study concludes that there was a significant positive effect. Bosaso local governments did not practice this type of budgeting to required levels and this led to the poor utilization of resources. The study recommends that there is a need to involve all relevant stakeholders when making budgeting decisions. The budgetary committee ought to have a composition that caters for all the people and departments that the budget would affect. There should be strict rules regarding the amount of time that the process should take and this time should not be too limited. It should be long enough to allow all input from all members and concerned parties to be obtained adequately and in the right manner.
Description
A Research Report Submitted to The College of Higher Degrees and Research in Partial Fulfillment of The Requirement for The Degree of Masters of Public Administration of Kampala International University
Keywords
Budgeting, Resource Utilization, Local Governments