Abstract: A majority of government institutions including Rwanda have recorded poor performance in form of service delivery and yet there is participatory budgeting to allow each ministry, districts, departments and sections to come up with their work plan to promote performance in these institutions. The overall objective of this study was to investigate the effects of budget management practices on performance of local government in Rwanda. The study specifically focused on the effects of budget planning, implementation and budget monitoring on the performance of local authorities in Rwanda. A descriptive research design was using both qualitative and quantitative data collection approaches. The target population of the study was 233 employees of the county authority. From this population a sample size of 129 respondents was obtained using a simple random sampling technique. Primary data was obtained by use of a closed ended questionnaire while secondary information was obtained through review of reports and journals. The data obtained was analysed by use computer based SPSS software program for descriptive and inferential statistics. The results was presented in form of frequency tabulations and regression matrices. In the finding it was established that Musanze district follow budget management practices accordingly. The district analyzes expenditure before coming up with budget plan, Musanze district analyzes income before coming up with budget plan, Musanze district analyzes likely inflation before coming up with budget plan and the manager’s delegate responsibilities. The district management approves payment as per the budget plan, Payment is done in a transparent way supported by receipt, all departmental head participates in budget management and conferences and budget is reviewed accordingly for proper utilization. The finding further shows that Budget implementation has improved performance of Musanze district. Lastly the head of department monitors the budget of their department, internal audit monitors if budget is being used as per the budget plan, external audit monitors if budget is being used as per the budget plan and District Accounts Committee monitors if budget is being used as per the budget plan. This was justified by the relationship between budget management practices has significant effect on district performance whereby the respondents N is 98 and the significant level is 0.01, the results indicate that independent variable has positive high correlation to dependent variable equal to .85.6** and the p-value is .000 which is less than 0.01. When p-value is less than significant level, therefore researchers conclude that variables are correlated and null hypothesis is rejected and remains with alternative hypothesis. This means that there is a significant relationship between budget management practices and performance of Musanze district. We can therefore conclude budget management practices have significant effect on performance of Musanze district.
Keywords: government institutions, work plan, budget management practices, budget planning.
Title: EFFECT OF BUDGET MANAGEMENT PRACTICES ON PERFORMANCE OF LOCAL GOVERMENT IN RWANDA: A CASE STUDY MUSANZE DISTRICT
Author: JACQUELINE MUKASHYAKA, Dr. PATRICK MULYUNGI
International Journal of Management and Commerce Innovations,
ISSN 2348-7585 (Online)
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