Factors Affecting Budget Utilization in Public Sectors: in the Case of Hawassa City Administration, Sidama, Ethiopia
Year: 2025
Type: article
Abstract: The government has to give great attention to budget utilization in order to bring desired economy and to satisfy public need and wants, this study aimed to empirically investigate the possible determinant factors of budget utilization in Hawassa City administration Public sectors. The selected factors are, Government Policy, Communication, Employees Related factors, Usage of Technology, Budget monitoring. A theoretical framework was used as a guideline to test the effect of these variables on budget utilization from the relevant literatures. Casual and relational research approach was employed. Thus, inferential statistical methods like correlation analysis was used to assess the relationship between the identified factors and budget utilization, multiple linear regression analysis also employed to examine the influence of the factors on Budget Utilization by using primary data collected through five scale likert questionnaire. Data were collected from 167 respondents from out of 169 sample of the study. Besides, descriptive statistical tools like mean and standard deviation are used to illustrate the demographic characteristics of the respondents and to assess the opinions of respondents towards the factors from data collected through questionnaire and the study revealed that the respondents feel differently for each factor. Government Policy, Communication, Employees Related factors, Usage of Technology, Budget monitoring and dependent variable namely; Budget utilization are with average mean of 2.83, 3.76, 3.28, 2.85, 2.64, and 3.71respectively. Based on the findings of the study, among determinate factors of three of them (Government policy, effective communication and Employee related factors) have a positive correlation with budget utilization and the remaining two (Usage of technology and effective monitoring and evaluation) did not have significant correlation with Budget utilization in the study area. The multiple linear regression analysis result revealed that four explanatory variables (Government Policy, Communication, Employees Related factors, and Budget monitoring and evaluation) have a significant effect on Budget utilization practices in the study area. The results of multiple linear regressions of the five determinant variables, the result shows that a value of R square is .759 which implies that 75.9 percent variation was caused by the considered independent variables. Based on the findings, the researcher forwarded valuable recommendations for the concerned bodies to give due attention on government policies, Communication aspects, Employees related factors and to strengthen the budget monitoring and evaluation practices at higher standards.
DOI: 10.20372/nadre:19042
Author: Tefera Felema
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W7082667672
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