Determinants of Effective Implementation of Performance Based Budget: Devolved Governance in Kenya

Abstract

The particular objectives of this study were to establish the effect of public participation, accountability, strategic plans and monitoring and evaluation on implementation of performance based budgeting in devolved government of Meru County. The study also established the moderating effect of appropriations and disbursement on the relationship between determinants of effective implementation and performance based budgeting in devolved system of governance in Meru County. Stratified random sampling technique was used to sample 8 Meru county executive committees, 27 Meru county directors and 54 members of Meru county assembly. Questionnaire was employed to gather data and analyzed by utilizing SPSS Version 25.0. Public participation, accountability, strategic plans and monitoring and tracking explained the performance based budgeting in devolved government of Meru County Kenya. Pearson correlation indicated that public participation, accountability, strategic plans and monitoring and tracking have a significant association with the performance based budgeting in devolved governments. Regression of coefficients showed that public participation, accountability, strategic plans and monitoring and tracking have a positive and significant relationship with the implementation of performance based budgeting in devolved government. It was concluded that public participation, accountability, strategic plans and monitoring and tracking affects the implementation of performance based budgeting in devolved government of Meru County Kenya. The study recommended for specifically tailored civic education and awareness among the public regarding public participation in making performance based budget. Besides, it was found out that clear strategic goals are required in the implementation of performance based budgeting in devolved governments. The study also recommended for clear mechanisms to systematically monitor and track the implementation of performance based budgeting in devolved government. The study also recommended for clear guidelines in the appropriations and disbursement of county funds. Strict adherence to the guidelines provided by the Public financial management Act (2012) should be followed employing appropriate monitoring and tracking tools.