Budget Performance Assessment of Selected Universities in Ethiopia

Abstract

This study, Budget Performance Assessment of Selected Universities in Ethiopia, was conducted using government universities and ministry of Finance documents, as case study. Since wants and needs are plenty while resources are limited, every organization tends to find means by which it can get what it wants and needs with the limited resources at its disposal. Therefore, firms seek to adopt the concept of budget performance of their organizations each year to satisfy their needs at the least possible cost and at the fixed time gap. That means operational/ recurrent budget was implemented within one budget year and Capital budget needs five up to ten years gap. The researchers adopted a descriptive research design with data gathered through primary and secondary data. Primary data was obtained from finance managers and budget experts of the universities on voluntary basis and secondary data was obtained from the annual reports of the universities and the centralized documents of Ministry of Finance and Economic Development (MoFED). Budgeting is a useful tool that guides firms to evaluate whether their goals and objectives are actualized. Considering the changing environment in which firms now operate, it can be concluded that budget, and effective planning which is a continuous management activity, should adapt to changes in the dynamic business environment.