Budgetary Planning and Financial Performance of Public Institutions in Uganda: A case of Uganda Communications Commission (UCC)

Abstract

The purpose of this study was to establish the effect of budgetary planning on financial performance of public organizations in Uganda using a case study of the Uganda Communications Commission (UCC). The study prompted by the poor financial performance of UCC. The objectives of the study were to examine the effect of budget information gathering on the financial performance of the UCC, to assess the effect of budget objectives setting on financial performance of the UCC and to find out how budget strategies formulation affect the financial performance of the UCC. A cross sectional case study research design, which was both quantitative and qualitative, was used. The sample for this study consisted of 115 respondents selected using stratified sampling, simple random sampling and purposive sampling techniques. The analysis involved descriptive statistics (frequencies and percentages) and inferential statistics (Spearman correlation, coefficient of determination and regressions). Findings revealed a positive moderate relationship between budget information gathering and financial performance of UCC, a moderate positive relationship between budget objectives setting and financial performance of UCC, and a strong positive relationship between budget strategies formulation and financial performance of UCC. It was concluded that budgetary planning significantly and positively affects financial performance of public organizations in Uganda. It was recommended that UCC should improve its budget information gathering, budget objectives setting and budget strategies formulation in order to improve its financial performance.