Utilization in public organizations: a case study of dawuro zone finance and economic development department
Challenges of budget utilization efficiency of study Sectors
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| 4.5 Challenges of budget utilization efficiency of study Sectors This section looks at the underlying reasons for or Major challenges of budget utilization efficiency, in recurrent and capital in the three selected study main sectors namely Economic, Social and Administrative sectors. Using the data collected in survey, interviews and data obtained from secondary sources, it was possible to analyze statistically the influence of factors which is stated interview results of key informants of planning experts and core process owner of the three budget holding sectors such as poor budget planning and management by budget holding sectors or units, lack of diligence of sector heads decision makers and late budget release from Dawuro Zone FEDD, length of bureaucracy, poor budget management and poor information exchange factors on the budget utilization efficiency of the three sectors. As shown in table 4.5.1, the underlying reasons for or factors affecting regular budget utilization efficiency in Economic sectors are poor budget planning and management by budget holding sectors, lack of diligence of sector heads decision makers and late budget release from Dawuro zone Finance and Economic Development Department. A closer look at a table 4.5.1, further revels that poor budget planning and management is the major factor leading low budget utilization rate in the sectors which is indicated by 9.09 mean score value out often) of ranking of factors for budget utilization inefficiency followed by lack of diligence of sectors heads decision makers and late budget release from Dawuro Zone FEDD with mean score value of 5.99 and 5.32 respectively. 80 Table 4.5.1: Mean Score values (out often) of ranking of factors for budget utilization inefficiency Main Budget holding sectors Ranking of reasons for possible budget utilization inefficiency Late budget release Length bureaucracy Lack of diligence of heads Lack of skilled finance staff Poor planning and management by budget holders Poor information exchange Social Sectors 3.31 8.33 2.85 3.02 6.10 4.15 Economic Sectors 5.32 1.96 5.99 2.16 9.09 3.01 Administi Sectors 9.09 3.10 2.17 2.61 5.52 4.26 Research: Finding complied EC Low budget utilization efficiency in the social sector of the Dawuro Zone Finance and Economic Development Department arose as a result of length bureaucracy, poor budget management and poor information exchange. These underlining factors have mean score of 8.33, 6.1 and 4.5 respectively. Under spending of the budget provided by Dawuro Zone Finance and Economic Development Department Administrative sector arose as result of late budget release, poor budget planning and management by budge holders and poor information exchange in the sectors. The mean score value of these three are 9.09, 5.52 and 4.26 respectively. |