Impact Of Factors Affecting Programme Based Budgeting Performance In Government Organizations In Kenya. A Case Study Of Ministry Of Interior And Coordination Of National Government

Abstract

Programme Based Budgeting is a result oriented budgetary process adopted as a government budgetary policy. The ministry of interior and coordination of national government uses this budgetary policy to prepare budgets every fiscal year, that is meant to be affordable, sustainable and comprehensive and on implementation should deliver on broad Policy objectives. However, the performance of programme based budgeting has remained debatable as criteria for setting up performance measurements is dynamic and still developing. The general objective of the study was to establish the factors affecting programme based budgeting performance in public organization in Kenya. The specific objectives of this study were to; analyze the effects of policy guidelines, determine the effect of stakeholder’s participation, establish the influence of budget implementation capacity, access the effect of institutionalized oversight body’s and evaluate the role of finance on the programme based budgeting performance in public organization in Kenya. Primary data was collected through filled in questionnaires by respondents. A target population of 247 respondents was used that included administrators with authority to incur expenditure (AIE Holders), Finance officers, economists, accountants, auditors- internal and external. A descriptive survey design was used, and descriptive statistics employed to analyze the data through the use of SPSS (version 20) computer software. An odd ratio regression model was applied to determine the relative probability of importance of each factor variable. The study findings indicated that there are adequate policies and procedures guiding PBB budgetary process, stakeholders' views and expert opinions are well sought in the development of policies and procedures and the budgetary policies and procedures are not donor forced ideologies but accepted negotiated domestic instrument. Results further indicated that there are adequate laws that make it mandatory for all stakeholders’ consultation on budgetary process for the budget to be legitimate, adequate awareness forums and sensitization programmes are undertaken by treasury to sensitize public on budget. It was also found out that the government had sufficient means of raising adequate funds sufficient to support its expenditure/ programmes proposals as per its budget statement. The study found that three variables, that is Budget policies, institutionalized oversight bodies and financial availability were statistically significant at p<0.037, 0.012, 0.005 respectively. The study recommends that, public organizations should ensure that they have effective budget policies and procedure, ensure strong and efficient oversight bodies are in place and ensure adequate resources are available for programmes implementation.