BUDGETARY CONTROLS AND ORGANIZATIONAL PERFORMANCE OF PUBLIC PARASTATALS IN UGANDA; CASE STUDY: UGANDA NATIONAL ROADS AUTHORITY, MBARARA BRANCH

ABSTRACT

The study aimed at examining the budgetary controls and organizational performance of public

parastatals in uganda, a case study on UNRA Mbarara. It was guided by three specific objectives

namely; to examine the effect of budget planning on organizational performance, to determine

the effect of budget implementation on organizational performance and thirdly to find out the

effect of budget monitoring on organizational performance of public parastatals in Uganda, a

case of UNRA, Mbarara. The study also adopted a case study research design and both

qualitative and quantitative approaches of data collection and analysis were used. Simple random

sampling and purposive sampling criterion were also used to obtain a suitable sample size for the

study. The data collected was coded and analyzed using SPSS. Data collected and analyzed on

the various objectives of the study revealed that budget planning had a weak positive correlation

with organizational performance, budget implementation has a moderate but positive correlation

with organizational performance and also revealed that budget monitoring has a strong positive

correlation with organizational performance. Hence to answer the first objective, the study

revealed that budget planning contributes 13.9%of the changes in organizational performance,

secondly the study revealed that budget implementation contributes 44.2% of the changes in

organizational performance and thirdly, the study revealed that budget monitoring contributes

50.1% of the changes in organizational performance. Hence basing on the findings, the study

revealed that budgetary controls contribute 47.9% of the changes in organizational performance.

Therefore, in conclusion the study revealed that budgetary controls have a moderate positive

effect on organizational performance of public parastatals. Lastly, from the findings of the study,

the researcher on budget planning recommended that goals set by all managers and issues raised

by key stakeholders should all be taken care of by management by crosschecking with the newly

proposed solutions to confirm that they have all been taken care of in the next budget planning

stage and that goals should be within one year but slightly hard to achieve, secondly on budget

implementation, the researcher recommended that management should set up independent

budget monitoring teams to crosscheck and verify reports made by the existing budget

monitoring teams on monthly basis. On budget monitoring the researcher recommended that

budget reviews should be done every three months while involving the staff who. prepared these

reports themselves to provide summaries of issues they feel should not miss while devising

solutions in the next annual budget planning process