Behavioral issues in planning and budgeting process in local government authorities

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University of Dar es Salaam
It is argued that most of the projects implemented under the Local Governments in Tanzania are below the standard, this study assess the behavioral issue in financial planning and budgeting in Local Government Authorities. The study has four purposes: first to assess the financial planning process that are instituted in Local government authorities, second to assess the financial budgeting process in local government, thirdly to investigate the financial control and lastly to assess performance measurement instituted by the financial budgeting in the Local Government Authorities. Through measurable variables of financial planning process, financial budgeting process, financial control and financial performance measurement, the study was able to link the variables with the financial decision made in the Local Government which seems to be one of the cause of below the standard project implementation. Two theories were involved; The Agency theory, in which focuses on the information Asymmetry between the Agent and the principle and the Behavioral theory which focuses on different behaviors of project implementers. The study revealed that involvement of employees in the financial planning and budgeting process, the use of financial planning guideline, financial control and financial performance measurement was 84%, 88.4%, 77%, 72.2% and 68.2% contributing to financial decision making respectively, this imply that for the planned projects to be of good standard all the variables for determining the financial decision made should be 100%.
Available in print form, East Africana Collection, Dr. Wilbert Chagula Library, Class mark (THS EAF HJ2180.9.C4752)
Budget, Local government, Local government authorities, Tanzania
Chandika, M. (2016) Behavioral issues in planning and budgeting process in local government authorities, Master dissertation, University of Dar es Salaam, Dar es Salaam