EFFECT OF BUDGETARY PLANNING ON THE PERFORMANCE OF THE COUNTY GOVERNMENT OF THARAKA NITHI

Elijoy Mwikali Musyoka, Dr. Mercyline Kamande

Abstract


Today's corporate world makes extensive use of budgeting as a tool for budgetary management by all public institutions, mostly to improve performance. Worldwide, budgetary control procedures are used and recognized as essential instruments for performance and planning. This study aimed at assessing the influence of budgetary control on the performance of the county government of Tharaka Nithi. The study investigated the influence of budgetary planning on the performance of Tharaka Nithi County government in Kenya. Anchored under the theory of revenue-maximizing and goal setting theory, the study adopted a descriptive research design targeting 2074 employees under the county government of Tharaka Nithi County. The investigator used a systemic sampling method to determine a sample size of 207 respondents through a sample interval. Both open-ended and closed-ended questions were utilized in the questionnaire, and SPSS version 28 was used by the researcher to evaluate the data. The study found that though financial management had been decentralized to departments, there were inefficiencies in regards to technology adoption, controls, oversight and timely supplementary budgeting. The study thus concluded that budgetary planning had a relationship and significantly influenced performance of the county government. The study recommended that the county government should review its policy on public participation in the budget process.

Keywords; Budgetary Planning, Performance, County Government

Full Text:

PDF

References


Fortuna, C. P. A. (2021). The Effect of Budgeting Methods on Isabela's Small and Medium-Sized Businesses' Profitability. The British Accounting Review, 43(2), 102-111.

Foster, T. A. (2017). Planning a budget, keeping it under control, the success of a company, and age all have a role in a small business's financial (Doctoral dissertation, Walden University).

Gacheru, A. N. (2012). Non-profit organizations in Kenya: how budgeting affects budget discrepancies (Doctoral dissertation, University of Nairobi, Kenya).

Gathu, P., & Kahindi, H. (2015). Freedom of information in Kenya. Kenya Chapter of Adili-Transparency International 1-12.

Gwiza, V. (2018). An assessment of the impacts of budgets and budgetary controls on the profitability of an organisation: a case study of Zimbabwe Spring Steel (Pvt) Ltd T/A load Agropower.

Imo, T. O., & Des-Wosu, C. (2018). Examining the impact of budgetary management on the rate of return on assets and the bottom line of publicly held businesses in the state of Rivers. International Journal of Core Engineering and Management. 8(3), 277-286.

Kibugi, R. M. (2014). Public Involvement in Environmental Policymaking and the Constitution. Constructing Fair Prospects at the State and Local Governmental Levels.

Kimani, E. M., & Ojwang, B. O. (2010). Influence of Budgetary Controls on Service Delivery in County Government of Nakuru in Kenya.

Kimunguyi, S., Memba, F., & Njeru, A. (2015). Effect of corporate governance on financial performance of NGOs in heath sector in Kenya. International Journal of Economics, Commerce & Management, III, 12, 390-407.

Kisaka, V. N., & Jagongo, A. (2021). Financial Accountability and Financial Performance of County Governments in Kenya. The International Journal of Business & Management, 9(8).

Lagat, C., & Okelo, C. (2016). Financial management at Kenya's Baringo County Government has been hampered by a deficiency in internal control procedures. Journal of Economics Finance and Accounting, 3(1).

Lee, C. (2020). Economic reforms in the aftermath of regime change in Malaysia. Asian Economic Policy Review, 15(2), 239-257.

Mbugua, S. (2021). The Perceived Relationship Between Strategic Planning and Performance of Smes in Nairobi City County (Doctoral dissertation, University of Nairobi).

Mukah, S. T. (2018). Local government in the Mezam and Momo divisions of Cameroon, focusing on budgetary management and performance. Journal of Economics Finance and Accounting.

Omach, D. (2010). Impact of Public Sector Budget Control Measures on Financial Outcomes: A Case Study of Pakwach Town Council, Nebbi District (Doctoral dissertation, Uganda Martyrs University).

Oxford Analytica. (2021). Kenya report reveals financial mismanagement burden. Emerald Expert Briefings, (oxan-db).

Oyebode, O. J. (2018). Budget and Budgetary Control: A pragmatic approach to the Nigerian infrastructure dilemma. World Journal of Research and Review.

Pimpong, S., & Laryea, H. (2016). Budgeting and its impact on financial performance: The case of non-bank financial institutions in Ghana. International Journal of Academic Research and Reflection, 4(5), 12-22.

Rugutt, W. K. (2019). Public financial management reform strategies and performance of selected county governments in Kenya (Doctoral dissertation, UoN).

Sebastian, A. Y. (2018). Effects of Budgeting on Financial Performance: A Study of Selected Manufacturing Firms in Kinondoni District Dar es salaam Tanzania. Journal of Accounting Research, 24(2), 241-249

Tan, B. S., & Low, K. Y. (2017). An investigation on Singaporeans' use of household budgets using quantitative survey research. International Journal of Economics and Management Systems, 12(1), 77-103.

Terry, L. D. (2015). Management in the public sector: An overview of the conservatorship role of the administrator: A Conservatorship with the Administrator. Routledge.

Torome, P. K. (2013). Local government performance in Kenya and its connection to income collection (Doctoral dissertation, University of Nairobi).

Wijewardena, H., & De Zoysa, A. (2011). “The Impact of Financial Planning and Control on Performance of SMEs in Australiaâ€, in: Journal of Enterprising Culture, Vol. 9(4), pp. 353-365.


Refbacks

  • There are currently no refbacks.