This study was conducted on assessment of budget management practice in the case of MajorrnGeneral Hayalom Araya Military Academy. The research considered the scant literature review onrnthe theme and aims to present scholarly report on the cause of the budget scarcity in this militaryrnacademy. As primary observer and insider, I am motivated to conduct this research. Thus, therngeneral objective of the study is to assess the budget management practice in the Major GeneralrnHayalom Araya Military Academy and explain the causes of budget scarcity in the academy. Thirtyrnpercent of the total target population with 85 respondents were used to fill the both open and close-rnended questionnaires. In addition, four commandants of the military academy were interviewed torncollect primary data through semi-structured interview. the analysed data using table of frequencyrnindicates that the annual plan is not depends on scientific studies and need assessment, the budgetrnof the military academy is centralized and the utilization is not transparent. The Academy Lacksrnadequate and experienced plan and budget experts.rnThere is no evidence based evaluationrnmechanisms in the budget utilization at each level of hierarchy.rnFrom this, the researcherrnconcluded that unscientific annual plan preparation, non-transparent budget utilization, andrncentralized budget management results in budget scarcity at lower level of the hierarchy to carryrnout their duties and responsibilities. Therefore, in order to improve budget management processrnthe leaders of the military academy should be committed enough to prepare annual plan and budgetrndepending on scientific research and need assessment. They should be rational in allocatingrnbudget for departments and budget users.rnKey words: Budget, Budget Management, plan, and budget, Major General Halom Araya MilitaryrnAcademy