Influence of Budgeting Practices on Performance of Local Government Entities: A Case of Kirehe District, Rwanda

Umuhoza Aimee Mireille &Tarus Thomas
University of Kigali
https://orcid.org/0009-0001-4708-2408
Email: umuhozamireille1@gmail.com

Abstract: The general objective of this research was to assess the influence of budgeting process on performance of local government entities in Kirehe District. The researcher adopted both descriptive and correlational design. The population of the study was 84 employees of Kirehe District. Data was analyzed using descriptive and inferential statistics. The findings revealed that for H01: Budget planning does not have significant influence on performance of Kirehe District. (β = 0.222, p = 0.027): This shows a positive and statistically significant influence on performance. Since p-value (0.027 <0.05), H01 is rejected. This confirms that budget planning significantly affects performance of local entities. For H02: There is no significant influence of budget implementation on performance of Kirehe District. Budget Implementation (β = 0.284, p = 0.004): The coefficient suggests that a unit increase in budget implementation improves performance by 0.284. Since p-value (0.004 < 0.05), H02 is rejected, confirming that budget implementation significantly influences performance. For H03: Budget controlling have no significant influence on performance of Kirehe District. Budget Controlling (β = 0.477, p = 0.000): This has the strongest positive effect on performance, with a unit increase improving performance by 0.477. Since p-value (0.000 < 0.05), H03 is rejected, proving that budget controlling significantly influences performance. The study concludes that budget planning plays a crucial role in enhancing the performance of Kirehe District. Kirehe District Finance Department should collaborate with sector leaders and community representatives to align budget priorities with local development needs.