MDF Theses and Dissertations

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Browsing MDF Theses and Dissertations by Author "Kanda, M. J."

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    The Effect of budget implementation on budgetary control in Elgeyo Marakwet County
    (Strathmore University, 2023) Kanda, M. J.
    The Controller of Budget has raised concerns about implementation of budget by the county governments among them being Elgeyo Marakwet. The county government has been marred by problems of budget deficits since the beginning of county governments in 2013-14 Financial year. It has also been facing challenges of under absorption of the recurrent and development expenditures. This study sought to investigate the effect of budget implementation process on budgetary control of Elgeyo Marakwet County in Kenya. The study also investigated the relationship between the budgetary control and the independent variables which are the budget expenditure, resource allocation and the Own Source Revenue Mobilization. The study was guided by budget theory and allocation theory. Data was collected from secondary sources, data of approved reports from the office of the Auditor General. Analysis of the data was based on the descriptive statistics and regression model analysis. The study used the Vector Autoregressive analysis. The choice of the model was informed by stationarity of data in levels. A lag selection of 2 was adopted, to ensure that the model was well-specified and had enough degrees of freedom. From the estimation, the study established that expenditure has a negative effect on budgetary control in the first and second lag. Own source revenue had a positive effect in the first lag. On the other hand, recurrent absorption had a negative effect on budgetary control in both the first lag and second lags. Finally, development expenditure absorption had a negative effect on budgetary control in both lags. The study suggests that the Elgeyo Marakwet county government need to enhance its revenue stream while also improving revenue collection efficiency by blocking leakages. This will guarantee that the approved budget is adequately funded. Secondly, the county government need to prioritize development initiatives and ensuring that projects are begun on schedule and within the time frame specified.