Participatory budget formulation and financial management In Mbarara District, Local Government, Uganda. A cross-sectional study.

Abstract

Background.

Participatory budgeting has increasingly been recognized as a mechanism for strengthening transparency, accountability, and efficient financial management within decentralized local governments. This study examined the effect of participatory budget formulation on financial management.

Methodology.

A descriptive cross-sectional research design was employed, using quantitative and qualitative approaches. Data were purposively and randomly selected from respondents, including district administrators, political leaders, finance officers, heads of departments, and local citizens. Structured questionnaires, key informant interviews, and document reviews were used. Quantitative data were analyzed using descriptive statistics, means, standard deviations, and regression analysis, while qualitative data were thematically analyzed.

Results.

Males constituted 60% of respondents, most were aged 31–40 years (53.3%), and nearly half (46.7%) held bachelor’s degrees. The majority (53.3%) had served between 5–10 years, demonstrating adequate institutional experience. Participatory budget formulation was rated high (mean = 3.91, SD = 1.06), indicating active citizen involvement in identifying priorities, selecting projects, and influencing resource allocation. Regression analysis revealed that participatory budget formulation significantly predicted financial management outcomes (R² = 0.574, F = 7.52, p = 0.02), explaining 57.4% of variations in financial management. However, financial management practices were rated average (mean = 3.16, SD = 1.51), with concerns related to unequal resource distribution, political interference, delayed auditing, and misallocation of funds.

Conclusion.

The participatory budget formulation positively enhances financial management by improving transparency, accountability, and responsiveness to community needs. Nonetheless, implementation gaps remain.

Recommendation

Mbarara District should strengthen citizen engagement frameworks, minimise political influence, improve information flow, enhance financial reporting systems, and conduct continuous capacity-building for budgeting stakeholders.