DETERMINANTS OF BUDGET UTILIZATION PRACTICE IN CASE OF ROBE CITY FINANCE OFFICE

ABSTRACT This study investigates the Determinants of budget utilization in Robe city finance office, with a specific focus on financial planning, staff competency, budget evaluation practices, and budget control mechanisms. The general objective of the study is to assess Determinants of the budget utilization practice in case of Robe City. Despite the substantial financial resources allocated for municipal development projects and service delivery, issues such as misutilization of budget allocations, poor financial planning, and inadequate monitoring and evaluation mechanisms persist. A mixed-methods research design was employed, integrating both quantitative and qualitative approaches. Data were collected from 121 purposively selected respondents out of a total population of 174 employees involved in the budgeting process. A structured selfadministered questionnaire served as the primary data collection instrument. The data were analyzed using SPSS Version 23, applying descriptive and inferential statistical techniques, such as frequencies, means, standard deviations, Pearson’s correlation, and multiple regression analysis. The reliability of the instrument was validated with a Cronbach’s alpha coefficient of 0.859. Findings indicate that financial planning has the most significant positive effect on budget utilization (B = 0.794, p < 0.001), followed by staff competency and evaluation mechanisms. Conversely, budget control was found to have a negative and statistically insignificant impact (B = -0.054, p = 0.240). The study underscores the critical role of financial planning and staff capacity in enhancing budget utilization. The study recommends strengthening financial planning processes and staff training programs, while reevaluating current control mechanisms to enhance efficiency and accountability. To the achievement of more efficient and effective budget management in Robe City finance.