Impact of budgeting on the performance of local governments. A case study of Rakai local government

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The study intended to establish the impact of budgeting performance of Local Governments with a case study of Rakai District Local Government. The study specifically sought to address four objectives namely: 1. To examine the impact of planning on financial performance of Local governments in Uganda. 11. To identify and compare the proportions of financial resources approved for the specific Sectors for Rakai District local government in 2014/15 and 2015/16 111. To examine the effect of forecasting on financial performance of Local governments in Uganda. 1v. to examine the relationship between budgeting and financial performance. It was also found that average performance of Rakai District Local government budget Performance was 80.81 % for the financial year 2014/15 while the average budget performance in 2015/16 was 85.3%. The major challenges facing Local Governments in full budget absorption were found to be both Internal (such as capacity and administrative issues) and external (including amount of funding, Time of release of funds, demand vs. supply, and infrastructural challenges). It was finally concluded that Rakai district local government is a fairly credible budget performer and therefore implementer of social services on behalf of the central government but there is need to vigilantly deal with the challenges that lead to under performance on a wider and detailed Scope. Several recommendations were made largely suggesting productive and effective liaison between local Governments and their funding agencies to deal with the challenges as a team
A research report submitted to the College of Economics and Management in partial fulfillment of the requirements for the Award of Bachelor’s Degree in Business Administration Accounting and Finance of Kampala International University
budgeting, local governments