The Effect of Budget Utilization on the Performance of County Governments: a Case Study of Eastern Kenya Region
Budget utilisation defines the means by which all planned activities will be delivered and responsiveness in the activities will create the outcome for reporting by the end of the implementation period. This study sought to investigate the effect of budget utilization on the financial performance of county governments in Kenya. The study targeted the county staff involved in the budgeting and revenue collections estimated at 700 in Kenya with a 10% for the study. The study used a structured questionnaire for the collection of data and too included secondary data of approved audit reports from the Office of the Auditor General covering a period of 2013 to 2015. The study used descriptive statistics to analyse the collected data and regressed data on Statistical Package for Social Sciences to illustrate the variable outcomes in the adopted regression model for analysis. The results were presented in form of tables and explained clearly on the impact existence in the variables. The study came up with the conclusion that in joint budget utilization including the Budgeted County Expenditure to the Budgeted County Revenues, Actual County Expenditures to Actual County Revenues and County Resources to the County Poverty Index has a positive influence on the financial performance of the counties. The study recommends properly structured budget composition including experts to provide insights on the proper budgeting inclusions and consultations with periodic update of the county capital structure and how to maximize well the input of donations and grants advanced.
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