Budgeting and budgetary control practices and performance of metropolitan, municipal and district assemblies in the northern region of Ghana

Abstract

The study examined the influence of budgeting on the performance of Metropolitan, Municipal and District Assemblies [MMDAs] in the Northern Region of Ghana. The study targeted officials responsible for budgeting in 16 MMDAs in the Northern Region of Ghana. Structured questionnaires used to collect the primary data. The study used the explanatory research design. Quantitative research approach was adopted the descriptive statistics results proved budgeting practices are in most instances are moderately effective regarding the perception of workers on the effectiveness of the execution of budgeting among MMDAs. Empirically, there seems to be a significant positive association between all the dimensions of budgeting practices on one hand and the performance of the MMDAs on another hand. Budgeting is significantly accounting for a moderate positive variance in the performance of the MMDAs in the Northern Region of Ghana. Budgeting components including budget implementation, budget preparation/planning and budget participation are making the most significant improvement in the performance of MMDAs although budget communication and budget evaluation also make some significant positive improvement in the performance of the MMDAs. Budget control and budget monitoring functions do not significantly improve the performance of MMDAs. MMDAs should continue to undertake budgeting programmes to plan their operations and improve MMDAs’ performance.