THE CONTRIBUTION OF BUDGETING PROCESS AND OPERATIONAL PERFORMANCE OF PUBLIC INSTITUTIONS IN RWANDA
This research was conducted in Kicukiro District with the purpose of understanding the contribution of budgeting process and operational performance of public institutions especially Kicukiro District from 2012 to 2018. The problem statement was looking out the ways of boosting the budgeting so that it was becoming an effective management instrument for preparation, organizing, implementation, controlling and reporting on institutional performance. A research work was led by the following objectives such as, assessment of the effectiveness of budgeting Process at Kicukiro District; analysis of how budgeting process contributes to the operating performance of Kicukiro District and to examine the effects of the problems encountered during the implementation of budgeting process at Kicukiro District. The significance of the study to public institutions particularly in Kicukiro District where the research was conducted, the researcher who was obtained a Master’s Degree in Business Administration from Mount Kenya University since it was one of the partial requirements for the award. In methodology, the researcher was adopted a descriptive research technique. A researcher decided to use quantitative and qualitative techniques to analyze and interpret responses to the research questions offered by respondents. The sample size was 30 people who have direct involvement in the budgeting process at Kicukiro District. The censuses were used to identify and select the respondents. Primary data were gathered by using questionnaires and secondary data were gathered by reviewing of secondary data sources like reports, journals and articles. The research study was conducted at Kicukiro District as a case study. The budgeting was frequently strategically planned to fit into long term targets, follows a formal budgeting cycle; planning, developing, implementation, evaluation and control as shown by a mean of 4.07 which is positive and 0.944 of standard deviation is heterogeneity and the respondents have different understandings since it is more than 0.5. Budgeting is often based on the available cash revenues and government rules and regulations were respected. A positive Pearson correlation value of 0.835*** with the level of significant (P=0.01) indicates that, there is an interrelation in between budgeting process and operational performance at Kicukiro District. Problems affecting budgeting process at Kicukiro District were identified. It was established that budgets were based on speculative opinion and generalization as shown by a mean of 3.90 which is positive and 0.960 of standard deviation was homogeneity and the respondents have not the same understandings since it was more than 0.5. Lastly, the findings show that budgeting team did not lack financial management skills as shown by a mean of 2.43 which is weak and 0.898 of standard deviation was homogeneity and the respondents have not the same understandings since it is more than 0.5. Budgeting process has a positively contributed to the performance of Kicukiro District. It was strongly agreed that budgeting process allows leaders to have a picture of the institution as shown by mean 4.43 which was positive and 0.679 of standard deviation was homogeneity and the respondents have not the same understandings.