Public Financial Management Practice In Public Institutions The Case Of Ministry Of Communication And Information Technology (mcit)

The purpose of this study was to evaluate the effect of institutional, strategic planning andrncontributory enablers on implementation of sound budgeting and financial management practice ofrnthe Ethiopian Federal Ministry of Communication and Information Technology. To explore thisrnstudy, descriptive research approach was used. Data was gathered using a structured questionnairernand guided interview. Respondents who are directly and indirectly responsible in implementing thernministry’s budget and financial management filled the questionnaire. Subsequently, the data wasrnanalyzed using SPSS version 20 statistical software. As a whole, the findings of the study revealedrnthat the main independent variables the institutional and contributory enablers have significantlyrnpositive effect in achieving sound budgeting and financial management practice. Consequently, allrnthe three sub variable of institutional factors (Normative, Regulative and cultural cognitive) have arnpositive effect on dependent variables of implementation of sound budgeting and financialrnmanagement practice of the ministry. In similar result, the overall statistical result of contributoryrnenablers (using information technology-IBEX and staff capacity) have positive effect onrnimplementation of sound budgeting and financial management of the ministry. However, of the twornsub variables, staff capacity has a negative effect on implementation of budgeting and financialrnmanagement of the ministry. On the other hand, as a set the effect of the main variable strategicrnplanning (Stakeholders participation and resource adequacy & predictability) have a positive effectrnon implementation of budgeting and financial management of the ministry. However, of the two subrnvariables, the resource adequacy and predictability have a negative effect on implementation ofrnsound budgeting and financial management practice of the ministry. Hence, the result implies thatrnthere is a need to fulfill and build capacity of finance and non-finance staff in basics of planning,rnbudgeting and financial management in the ministry. Further, the ministry should give due attentionrnto strengthen the institutional and contributory enablers’ factors while not ignoring the effect of staffrncapacity and resource adequacy to enhance the soundness of budgeting and financial management ofrnthe ministry.rnKey Words: Budgeting and financial management, Strategic planning, Institutional, Contributoryrnenablers

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