Public Financial Management Practice in Public Institutions: the Case of Ministry of Communication and Information Technology (MCIT)
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Date
2015-07
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Addis Ababa University
Abstract
The purpose of this study was to evaluate the effect of institutional, strategic planning and
contributory enablers on implementation of sound budgeting and financial management practice of
the Ethiopian Federal Ministry of Communication and Information Technology. To explore this
study, descriptive research approach was used. Data was gathered using a structured questionnaire
and guided interview. Respondents who are directly and indirectly responsible in implementing the
ministry’s budget and financial management filled the questionnaire. Subsequently, the data was
analyzed using SPSS version 20 statistical software. As a whole, the findings of the study revealed
that the main independent variables the institutional and contributory enablers have significantly
positive effect in achieving sound budgeting and financial management practice. Consequently, all
the three sub variable of institutional factors (Normative, Regulative and cultural cognitive) have a
positive effect on dependent variables of implementation of sound budgeting and financial
management practice of the ministry. In similar result, the overall statistical result of contributory
enablers (using information technology-IBEX and staff capacity) have positive effect on
implementation of sound budgeting and financial management of the ministry. However, of the two
sub variables, staff capacity has a negative effect on implementation of budgeting and financial
management of the ministry. On the other hand, as a set the effect of the main variable strategic
planning (Stakeholders participation and resource adequacy & predictability) have a positive effect
on implementation of budgeting and financial management of the ministry. However, of the two sub
variables, the resource adequacy and predictability have a negative effect on implementation of
sound budgeting and financial management practice of the ministry. Hence, the result implies that
there is a need to fulfill and build capacity of finance and non-finance staff in basics of planning,
budgeting and financial management in the ministry. Further, the ministry should give due attention
to strengthen the institutional and contributory enablers’ factors while not ignoring the effect of staff
capacity and resource adequacy to enhance the soundness of budgeting and financial management of
the ministry.
Key Words: Budgeting and financial management, Strategic planning, Institutional, Contributory
enablers
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Keywords
Budgeting and financial management, Strategic planning, Institutional, Contributory enablers