Abstract:
The purpose of this study was to examine the effect of budgetary control practices on the financial performance of Tororo District Local Government in Uganda. Specifically, the study focused on three key dimensions of budgetary control: budget planning, budget review, and expenditure control. The research was guided by the Public Financial Management (PFM) theory, which emphasizes accountability, transparency, and efficiency in public resource management. A cross sectional research design was employed, using a structured Likert-scale questionnaire administered to 60 staff members involved in financial and administrative functions within the district. Descriptive and inferential statistics, including correlation and regression analysis, were used to analyze the data. The findings revealed significant and positive relationships between all three components of budgetary control and financial performance. Notably, expenditure control had the strongest influence, explaining 75.4% of the variation in financial performance (adj R² = .754, p < 0.01), followed by budget review (adj R² = .440, p < 0.01) and budget planning (adj R² = .384, p < 0.01). The study concludes that effective budgetary control mechanisms are critical to enhancing the financial performance of local governments. Based on these findings, the study recommends strengthening expenditure monitoring, institutionalizing periodic budget reviews and adopting participatory and data-driven planning processes.
