Determinants of Effective Budget Utilization in Ethiopian Public Institutions

Abstract

According to many scholars finding Budget utilization is affected with intrinsic and extrinsic factors within the boundary of in and outside of the organization having the influence on the proper utilization of the budget. The major objective of this study is to determine the major factors that affect effective budget utilization in Ethiopian public institutions, which is both institutional intrinsic and outside of the institution external factors. To achieve this objective a systematic review of meta-analysis method was used. The the major findings of the review shows that lack of effective monitoring and evaluation, structural problems, employees competency and centralized budget allocation have a significant critical factors which is found in all institutions as a negative determinant factor of in effective budget utilization in Ethiopian public institutions. Based on the findings the researcher recommends that every public institution should give attention regarding with the listed out factors before approval of annual budgets in order to effectively utilize the approved budgets.

Keywords: Utilization, Budget, Approval, Centralized, Competency

DOI: 10.7176/RJFA/12-17-02

Publication date:September 30^th 2021