Participatory budgeting and financial management in Uganda a case study of Kabale district
Abstract
The purpose of the study was to investigate how participatory budgeting affects financial
management in Kabale District. I used a case study research design with a sample of 75
individuals. These included District chairperson ( 1 ), Chief Accounting Officer (1 ), Senior finance
officers (6), Heads of department (8), Administrative Staff (14), Councillors (20) and Local
citizens (30) from Kabale District. A structured questionnaire was used to establish and test the
hypothesized relationship~ and mediation effect between participatory budgeting and financial
management. The results suggest that participatory budgeting formulation significantly affect
financial management. More so, the relationships between participatory budget implementation,
participatory budget monitoring and financial management were found. The study was assessed
using both District administrators and local citizens collectively. However if the two groups were
separately assessed possibly there would be a variation in perception or behavioral responses
towards financial management. The findings suggest that there is a need to develop and sustain
financial mechanisms among participatory budget formulators and participatory budget
implementers that translates into desired financial management. The results contribute towards
the limited empirical and theoretical evidence regarding the mediating role of participatory
budgeting in explaining financial management.