External Factors Affecting Budget Utilization in Ethiopian Public Universities

Abstract

Inefficient higher education budget utilization has been adversely affecting the implementation of government policies, programs and project implementation in Ethiopia. This study sought to investigate external factors that affect proper budget utilization in public universities of Ethiopia in 2017. A total of 178 respondents were randomly selected from Dilla, Wolaita Sodo, and Bule Hora Universities. Primary data were collected using closed and open questionnaires. To supplement the survey result secondary data were collected from a federal general auditor. The data were analyzed using various descriptive statistics. The findings indicated a significant improvement in budget allocation to public universities from time to time. However, imposition of the federal agencies to implement unplanned activities by Universities, delay in project implementation, low financial and technical capacity of the contractors in terms of financial and technical matter that cause project implementation delay’s particularly for construction projects had adversely affected the budget utilization of the study Universities. This study recommended that the potential of the contractor both technical and financial capacity and their past performance should be properly evaluated before coming to an agreement. The result also suggested that there should be a need timely and continuous follow up the progress of the project and take corrective action before the end of the fiscal budget year.

Keywords: Budget Utilization, Public Universities, External Factors, Ethiopia

DOI: 10.7176/JESD/10-21-06

Publication date: November 30^th 2019