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.