Participatory Budgeting and Financial Management in Local Government: Study of Mbale District

Abstract

This study sought to assess how participatory budgeting affects financial management in Local Governments taking a case of Mbale district. The specific objectives were to: assess establish the relationship between participatory budget formulation and financial management, establish the relationship between participatory budget implementation and financial management and to establish the relationship between participatory budget monitoring and financial management. The study used a target population of 100 respondents. The study employed purposive sampling and simple random sampling techniques for selection of a sample size of 80 respondents. Quantitative data was collected using a questionnaire. On the other hand, interview guides were also used to collect qualitative data. The collected data was analyzed using descriptive statistics in SPSS software version 20. Correlation analysis were also used to determine the relationship between independent variables on dependent variables. The study found that there was strong positive and significant relationship between participatory budget formulation and financial management with r = 0.758, p-value = .000 given by Pearson correlation coefficient at 0.01 (2 - tailed) level of significance. The study also found that there was a strong positive and significant relationship between participatory budget implementation and financial management with r = 0.848 p-value = .000 given by Pearson correlation coefficient at 0.01 (2 - tailed) level of significance. Further the study found that that there was a strong positive and significant relationship between participatory budget monitoring and financial management with r = 0.600, p-value = .000 given by Pearson correlation coefficient at 0.01 (2 - tailed) level of significance. Based on the study findings, the researcher recommends that management of Mbale District should put more emphasis on participatory budget implementation. The researcher additionally suggests that the management should pay more emphasis and attention on ensuring participatory budget formulation. Finally, the researcher recommends that Management should also put more emphasis on participatory budget monitoring.