Human Resource Management Research 2018, 8(2): 23-33

DOI: 10.5923/j.hrmr.20180802.01

Role of Budgeting Practices in Service Delivery in the

Public Sector: A Study of District Assemblies in Ghana
George Kojo Scott1,*, Francis Enu-Kwesi2

1
Secretary General, African Association for Public Administration and Management (AAPAM)
2
Institute for Development Studies, University of Cape Coast, Cape Coast

Abstract This research analysed the role played by budgeting as practiced in the district assemblies of Ghana towards
service delivery. The research adopted a mixed-method research design where qualitative and quantitative data were gathered
using questionnaires, interviews, focus group discussions and document analysis. The study used multistage sampling to pick
the respondents for the questionnaires, key interview informants and the participants in the focus group discussions. Thirty
four out of 170 district assemblies which existed by 2008 were sampled. Participants in the study included 612 District
Assembly (DA) officials, 1020 citizens, 28 national/regional officials and 20 participants in focus group discussions.
Quantitative data, measured by using scaled-items, were analysed using descriptive statistics and regression while qualitative
data were examined thematically. The findings showed that citizens rated service delivery poorly, while district assembly
officials rated service delivery as satisfactory. The study established that budgeting practices had positive significant
influence on service delivery. The study findings have significant implication on the public administrators, citizens and
scholars as it established the importance of having in place proper budgeting practices if the public sector decentralised
governments and agencies will be able to deliver satisfactory services to the public especially in the African context.
Keywords Public Financial Management, Budgeting, Service Delivery, District Assemblies and Equity

quantitative expression of a proposed plan of action by

1. Introduction management for a specified period, while Blumentritt (2006)
defines budgeting as the process of allocating an
The need for prudent public financial management for organization's financial resources to its units, activities and
development objectives to be achieved is emphasised in investments.
many circles. For example, while underlining the importance In many countries, governments are utilizing
of favourable environment for undertaking productive decentralization tools for poverty reduction, improving
economic activities as necessary for development, the World representation of the poor and better targeting of service
Bank (2011) emphasizes the need for developing countries to delivery (Jütting et al., 2004). Decentralized budgeting has
ensure efficient management of funds. In the same vein, thus become crucial, and the need for proper budgeting
Jordaan (2013) observes that understanding public financial practices has been identified as essential for developing
management is imperative as it forms an integral element in nations, including those in Africa. Siswana (2007) notes that
national development and growth which is central to the proper budgeting assists public sector entities to ensure that
existence of functional governments. expenditure patterns in relation to programmes and projects
Budgeting which is one of the key components of the occur within a budgeted vote. Furthermore, as noted by
public financial management has been termed as the genesis Russell and Bvuma (2009) there is a need to plan, budget for
of functional public administration. Tyer and Willand (1997) and implement actions which have the potential of radically
define budgeting as valuation of receipts and expenditures or improving the reach, accessibility and quality of service
a public balance sheet, and as a legislative act establishing delivery in the African public sector. According to
and authorizing certain kinds and amounts of expenditures Tsheletsane and Fourie (2014), financial management fulfils
and taxation. Horngren et al. (2004) described a budget as the an important role in the South African public sector, because
without public funds to cover operational and capital costs,
* Corresponding author: and without appropriate personnel, no public institution can
[email protected] (George Kojo Scott)
render effective services. This paper looked at budgeting as
Published online at http://journal.sapub.org/hrmr
Copyright © 2018 The Author(s). Published by Scientific & Academic Publishing practiced in the DAs where issues on budgeting policies,
This work is licensed under the Creative Commons Attribution International processes, persons involved as well as public dissemination
License (CC BY). http://creativecommons.org/licenses/by/4.0/ of the budgets were analyzed and how they influence service
24 George Kojo Scott et al.: Role of Budgeting Practices in Service Delivery in the
Public Sector: A Study of District Assemblies in Ghana

deliver. non-financial elements into the budget.

The case for decentralization and decentralized budgeting According to Hyde (1992) as cited by Khan and Hildreth
remains strong especially in Africa (Hope, 2014) where (2002), budgeting is partly political, partly economic, partly
countries such as Kenya, Tanzania, Uganda, Ghana, Nigeria accounting and partly administrative. Michel (2002) adds
and South Africa have adopted varied strategies to that the budget is also a communication tool. As a political
strengthen decentralization (Finch, 2015). These strategies document, it allocates the scarce resources of a society
have covered several areas of decentralization including among multiple, and competing interests (Wang, 2002),
human resource management and financial management while as an economic document, it serves as the primary
(Kinemo et al., 2015). In Ghana, decentralization has taken instrument for evaluating a jurisdiction’s economic growth
the form of District Assemblies since 1992. and development, and that as an accounting document, it
Decentralized budgeting practices in Ghana have been provides a ceiling on government spending and makes it
linked to attempts to reduce inequity, since over time citizens legally binding for it to live within the allocated funds (Bartle
have not gotten the desired fruits of equitable resource & Shields, 2008).
allocation. Inkoom (2011) highlights the agency problems, As an administrative document, the budget specifies the
noting that there is conflict in the budgeting process because ways and means by which public services are provided, and
district assemblies are required to budget and report by establishes criteria by which the services are monitored, and
integrating all the decentralized sectors, while the sector evaluated (He, 2011). The budget as a communication tool
ministries execute financial reports on sectoral lines. In helps decision makers to make informed choices about the
addition, Inkoom observes that the national budgeting and provision of services and capital assets and to promote
accounting systems are difficult to align with the accounting stakeholder participation. As a communications device, the
needs at the local levels. Moreover, on the basis of allocative budget allows public officials to interact and engage with
efficiency, Speer (2012) argues that though large amounts of citizens and taxpayers (Lapsley & Ríos, 2015). Lu and
financial resources are allocated for service provision to the Willoughby (2015) argue that administrative and
decentralized governments, financial management practices communication capacities of budgets are important in
have remained the weak link. ensuring transparency and accountability in the management
Despite the benefits that can accrue from a clear of public funds. The importance of budgeting was
understanding of the link between budgeting and service emphasized by Ekholm and Wallin (2000) who noted that
delivery in public sector entities, available studies on this budgets, as a control practice, have always played a key role
subject are still in their infancy. Ahmad and Brosio (2009) in managing institutions by providing a roadmap for future
noted that the question of how to improve public sector activities and to set a series of goals to be achieved and the
service delivery remains a key concern for scholars and means by which to achieve those goals (Awio & Northcott,
policy makers in line with the New Public Management 2001). Additionally, Pintea et al. (2013) insist that rigorous
(NPM) and allocative efficiency tenets. This is reinforced by planning of any economic activity is an essential element for
Essuman and Akyeampong (2011) as well as Inkoom (2011) the success of those activities.
who contended that after more than two decades since the The importance of budgeting can be linked to the new
adoption of decentralization in Ghana, there remained valid public management (NPM), the allocative efficiency,
concerns which need to be studied through continuous robust transaction cost, the principal agent and systems theoretical
theoretical and empirical analysis. It is from this perspective perspectives. Hamid (2013) based on the tenets of NPM
that the study assessed the influence of budgeting practices approach, notes that efficient resource management is
adopted by District Assemblies in Ghana on service delivery, essential in accelerating the pace of economic growth and
with the main proposition that the budgeting practices do not development, as well as improving the general wellbeing of
significantly affect service delivery. the society. NPM framework was developed in response to
inadequacies of the traditional paradigm of public
administration and advocates for entrenching of private
2. Literature Review sector management best practices into public sector to
enhance service delivery (Goldfinch & Roberts, 2013).
Norton (2006) creates the link between budgeting and Accordingly, NPM has led to integration of private sector
planning, indicating that planning is an intelligent behavior financial management practices into budgeting such as cost
that involves visualizing the future, imagining what results benefit analysis, measuring and comparison of outputs (Van
one expects to achieve and determining the activities and Dooren et al., 2015).
resources needed to achieve those results. In addition, Unlike the NPM approach, the primary focus of the
Jordaan (2007) defines a budget as a quantified, planned allocative efficiency theory, according to Avkiran (2001), is
course of action over a definitive time period, comprising the optimal allocation of resources that maximizes
estimating inputs and the costs of inputs along with well-being of the society. Kahkonen and Lanyi (2001) held
associated outputs and revenues from outputs. Achim (2009) the position that allocative efficiency is better achieved
as cited by Pintea et al. (2013) on the other hand indicates through matching of public services to local preferences
that budgeting is the activity of recording financial and/or during the budgeting process. Arguing in similar viewpoint,
 Human Resource Management Research 2018, 8(2): 23-33 25

Robinson (2007) indicates that the allocative efficiency health services thus ensuring better water and sewage
argument is that productivity of health, education and other connections, waste removal in addition to significant
services can be maximized by enhancing public participation reduction in the infant mortality rates. The study concluded
during the budgeting process. Kruk and Freedman (2008) that budgeting is more effective in determining the quality of
explain that public spending has to be technically and services delivered when the citizens are more actively
allocatively efficient to reflect social objectives in the form engaged and participate in the process.
of better services or other socio-economic benefits. Similarly, Nayak and Samanta (2014) evaluated the role
The agency and the transaction cost theories are also of public participation on decision making in the budget
relevant to budgeting practices in public entities as there are making process in West Bengal, India. Nayak and Samanta
numerous stakeholders who have vested interests posing found that all forms of participation offered the citizens a
agency and information problems which have to be forum to ‘raise their voices’ on matters concerning projects
addressed to minimize opportunistic behaviors (Marino & in their localities. Imuezerua and Chinomona (2015) also
Matsusaka, 2005). Paul and Leruth (2006) as well as Inkoom analysed the budgeting and service delivery patterns of
(2011) have applied the agency theory to expose agency Sedibeng Municipality in South Africa. Thirty four
problems in the financial management process, noting that at participants comprising heads of department in the budget
the budgeting stage public officers usually want to commit and integrated development plan, managers, assistant
resources to projects that will benefit them or their proxies managers and municipal officials involved with budget
once the resources are allocated and thus it is incumbent preparation and integrated development plan within the
upon the parliament, public, donors and the civil society to municipality provided data for the analysis. The study found
play their respective oversight roles. Under the systems skills inadequacy among budgeting staff as having led to the
approach the study holds that the budgeting issues in public poor services offered by the municipalities, which could
entities are interrelated amongst themselves and also with explain the service delivery protests which have been
service delivery. experienced in the South African Municipalities since 1994.
Bhatia (2009), while studying public financial Based on the various views and the theories, a conceptual
management in India, unearthed a dilemma with regard to framework for budgeting and service delivery (Figure 1) has
finding the right balance between the extent of information been suggested to show the link between budgeting practices
disclosures and ensuring that the budgeting process is and services in public sector entities. The framework holds
accomplished within the set timelines. Gonçalves (2014) that budgeting practices as indicated by policies, procedures,
investigated whether the use of participatory budgeting in involvement of public officials, information and public
Brazilian municipalities during 1990–2004 affected the participation have a role to play in the nature of services
expenditures pattern and had any impact on living conditions. offered. The services offered by public entities are indicated
The authors used econometric analysis, specifically panel by their availability to the citizens, their quality and the cost
data regression, based on data for the period 1990 to 2004. of these services. In line with the systems approach the
They found that adoption of participatory budgeting is conceptual framework emphasizes the inter-linkages among
associated with increased expenditure on basic sanitation and the issues studied.

System Theory
Allocative efficiency theory

Transaction Cost Theory

New Public Management

Principal agent theory

Budgeting Practices Service Delivery

- Policies - Services Availability
- Procedures - Quality of services
- Officials involved - Cost of services
- Information
-Public participation

Independent Variable Dependent Variable

Figure 1. Conceptual Framework for Budgeting and Service Delivery (Source: Authors (2017) based on various views from literature)
26 George Kojo Scott et al.: Role of Budgeting Practices in Service Delivery in the
Public Sector: A Study of District Assemblies in Ghana

3. Methodology questionnaires, key informants’ interviews, focus group

discussions, observations and review of documents such as
The study was conducted within the pragmatic research DAs budgets, strategic plans as well as public notices. These
philosophy and using mixed method research design where sources of information provided a very good data which
both quantitative and qualitative tools were used. This was aided in ensuring that there is quality information whose
because the design tested a research hypothesis and also interpretation yields viable results. Efficiency of the existing
provided deeper explanations into budgeting practices and budgeting and planning practices were rated on a four-point
their influence of service delivery. The study utilized rating scale (1-Very Inefficient, 2-Inefficient, 3-Efficient and
research questionnaire, developed through the use of scaled 4-Very Efficient). The nature of budgeting practices and
items measured on 1-5, to gather quantitative data, while their link to service delivery was assessed on a five-point
qualitative data were gathered using interviews and focus Likert Scale (1-Strongly Disagree, 2-Slightly Disagree,
group discussions. The quantitative items on the research 3-Neutral, 4-Slightly Agree and 5-Strongly Agree). The
questionnaires were probed further through the interviews extent that budgeting and planning practices influenced
with key informants and focus group discussions. According service delivery was assessed on a five-point Likert Scale
to Mangan et al. (2004), methodological triangulation and (1-Very Low Extent, 2-Low Extent, 3-Moderate Extent,
using mixed methodologies increasingly provide 4-High Extent and 5-Very High Extent). This enabled the
multidimensional insights into diverse research problems. In respondents to give structured responses on their opinion on
this study, the correlational design enabled the accurate the subject matter hence making the study effective since it
portrayal of budgeting practices and its linkage to service was easy to get required information. Data analysis for
delivery in the sampled Ghana DAs. quantitative data was conducted using percentages, mean
The study population was the 170 DAs that were in scores, standard deviations and regression while for
existence in Ghana as at 2008 with a population of 23.11 qualitative data, thematic analysis was utilized.
million. The study used multistage sampling to pick the
respondents for the questionnaires, key interview informants
and the participants in the focus group discussions. First, 4. Results and Discussions
20% proportionate sampling was applied to select 34 DAs
which were representative of the diverse characteristics of This section of the study presents the analyses and results
the DAs in Ghana based on characteristics such as for the research. In studying budgeting as a component of
geographical, rural-urban, and poverty levels. Based on these Public Financial Management (PFM), and its influence on
34 DAs two officials from each of the nine key departments service delivery, the various aspects of the analyses and
in each DA were selected yielding a total of 612 respondents discussions as presented in this section have been broadly
in this category. grouped as follows:
Convenience sampling was applied to select 30 (a) Budgeting policies and procedures.
respondents from each of the 34 sampled DAs based on the (b) Efficiency of budgeting practices in the DAs.
Central Limit Theory, which brought the total number of (c) Link between budgeting practices and service
citizen respondents to 1,020. Purposive sampling was delivery.
applied to select participants for 28 key informants who (d) Result of the hypothesis test is also presented.
comprised of officers from the national and regional levels
whose work is directly related to budgeting and service Budgeting Policies and Procedures
delivery of the DAs. Lastly purposive sampling was used to The study results revealed that majority (95.5%) of the DA
select 20 focus group participants for the two focus group officials indicated that there were laid down policies to guide
discussions. A total of 963 out of 1020 questionnaires from the budgeting process in the District Assemblies. The results
citizens and 443 out of 612 from the DA officials were imply that all the DAs had guidelines indicating that the
retrieved. The sampling methods employed in selecting the devolved government units in Ghana attach much
participants ensured that there is no biasness and every importance to policies. These findings relate with the
member in the groups had equal chance of being selected. explanation by Ma and Yu (2012) that policies are important
Descriptive statistics and regression analysis tools from in setting limits and giving guidelines to stakeholders
Statistical Product and Service Solutions (SPSS) version 21 involved in the budget process and thus the need for all
were used to analyze the data. The descriptive statistics stakeholders to be aware of such policies.
especially mean, standard deviation, maximum, minimum A synthesis of the responses by DA officials interviewed
and range are some of the measures of central tendency indicated that the policies were uniform, implying that the
which were employed to study the behavior of the collected DAs have been sharing the budgeting best practices. This
data. The regression analysis further assisted in ensuring that finding is in line with the observation by Bhatia (2009) that
the relationship between budgetary practices and service many best practices which are useful in making budgets
delivery is well articulated and effects of the former to later efficient are generic. Bhatia advises that a budget should
identified. follow systematic processes in order to make it efficient. The
The analysis was based on information obtained from the systematic process will ensure that efficiency and
 Human Resource Management Research 2018, 8(2): 23-33 27

transparency are achieved. This prevents misuse of resources symbolized by the District assemblies in Ghana.
since all budgets are in line with the guidelines. The findings The results in Figure 2 show that 49.2 percent of the DAs
also correspond with the findings by Bartle and Ma (2004) review their plans annually, 40.4 percent review their plans
who indicated that many of the values of the normative best quarterly while 10.4 percent of the DAs review their plans
practices framework of public funds management, such as semi-annually. These findings convey adherence to best
budgeting, are manifestations of the transaction cost theory. practices in budgeting which indicates the need to regularly
The indication from the interview transcripts of the DA review budgets to align them with changing conditions and
officials is that a budgeting committee is formed by the circumstances as noted by Latema (2013). The study
assembly for the designing of the budget plan. Furthermore, findings on budget review in the DAs are also in line with
the responding DAs indicated that action plans for the year Welham et al. (2013) observation that reviews are important
are prepared and a fee fixing resolution passed before the to facilitate enactment of new laws, adjustments in
budget is prepared. All budgets of the assemblies start from macroeconomic parameters and mostly change in resources
sub-committees to the Executive Committee level. In order availabilities. Due to the dynamic nature of economies as
to facilitate the participation in the budgeting process, the witnessed by various business cycles, the review of plans is
responding DA officials indicated that information gathered an important consideration specifically to conform to the
from stakeholders forms the basis for preparing the budget. changes occurring in the economy. The plans are reviewed
These results correspond with DfID’s (2001) position that in after some set durations such as annually, quarterly or semi
public agencies, certain laid down procedures in budgeting annually which provides sometime for evaluation of the
must be followed to standardize the process and ensure that impact of the plans which have been in place.
personal discretion in the process does not occur.
According to the DA officials, all departmental budgets
are brought together and a composite budget formed out of
them. They indicated that all districts develop their budget
plans with guidance to conform to that of the National
Development Planning Commission (NDPC) out of which
the budget is drawn. This practice ensures that there is
equality in resources distribution among various departments
making service delivery effective and efficient. All
medium-term development plans (MTDP) of all DAs are
harmonized with national policies which serve as a guide to
budgeting. These findings indicate that the procedure for
budgeting seems to follow the bottom-up approach as
espoused by DfID (2001). This ensures that budgets of lower
units are scrutinized and sanctioned by higher authorities and
Figure 2. Frequency at which DAs review their plans
unnecessary spending thwarted. (Source: Authors (2014))
The study investigated the existence of district assemblies’
strategic plans where majority (92.8%) of the DA officials Documentary checks on several District Assemblies
indicated that the District Assemblies have strategic plan including Afigya-Kwabre District, Tano North District,
while 7.2 percent indicated that there was no strategic plan in Atiwa District and Accra Metropolitan Assembly offered
place. This shows that majority of the DAs follow those laid further insights on budgeting procedures. The budget
down strategies to achieve their set goals and objectives committee in the DAs requested for proposals from all heads
which are basically service delivery. The results show that of departments and these were discussed, reviewed and
majority of the DAs have adopted strategic planning in their approved. In the process, departmental managers attended
operations. These findings imply that the DAs had strategic budget committee meetings to defend their proposals. The
plans, but a few officials were not aware of them. This documentary analysis on budgeting procedures matched
indicates that the DAs were observing a critical step in with the observation of the DA officials about the processes
budgeting, as indicated by Lee (2012) that strategic planning being efficient. The study results are also in agreement with
is the second important stage in budgeting which entails findings by Broback and Sjolander (2002) that efficiency in
setting expenditure patterns and targets on the basis of budgeting is important to ensure that unnecessary processes
macro-economic projections, ideally over 3 to 5 years. The and procedures are done away with. However, the study
social media platforms such as WhatsApp, Facebook and findings on uniformity of budget preparation in the DAs
twitter among others could be used to create awareness differs with Khan and Hildreth (2002) who observed that it is
among the officials about the existence of those strategic difficult to have a standardized approach or technique in
plans. This effort will promote collective responsibility public budgeting.
among the officials towards achievement of such strategic Participants in the focus group discussions in Tema agreed
plans. The strategic plans are further viewed as the that the processes for the preparation of the budget and plans
operational guide in most of the devolved units as for the districts were efficient. Documentation and planning
28 George Kojo Scott et al.: Role of Budgeting Practices in Service Delivery in the
Public Sector: A Study of District Assemblies in Ghana

processes for the budgets were said to be very good. The findings concur with the results from a study by Kahkonen
participants indicated that difficulties lay with the and Lanyi (2001) which emphasized the importance of
implementation of the plans and the budget. Findings from diverse sources of information about government policies
the focus group discussion in Tamale revealed that some of and activities reaching citizens.
the challenges identified in budget implementation included
Table 2. Information Sources
inflation, delays in releasing of funds to the DAs and lack of
provisions for contingencies. Information Source Frequency Percent
The issue of politicization of the budgeting process was District Assembly Newsletter 111 11.5
also highlighted in the two focus group discussions held with Radio 362 37.6
the participants noting that the politicians brought Newspaper 111 11.5
contingencies that are not catered for in the previous budget Political Rallies 135 14.0
stages. The participants highlighted the politicians’ tendency
Observation 224 23.3
of making promises for development projects to the
Others 20 2.1
electorate despite those projects not being considered in the
budgeting process. The discussants agreed that political Total 963 100.0
influence, in turn, weakens the role played by budgets in Source: Authors (2014)
service delivery. Though, Khan and Hildreth (2003) explain
that budgeting is partly political, partly economic, partly Frequency of information provided on district assembly
accounting and partly administrative, there should be a matters relating to budgeting and service delivery was also
formal way of coordinating these different aspects of enquired from the citizen respondents. The results are
budgeting. The key informants were also in agreement with illustrated in Figure 3. Results revealed that 30.7 percent of
Wang (2002) that political interference in the technical and the respondents indicated that they rarely received
administrative aspect of budget making could lead to information on budgeting and service delivery. However,
defeating the core importance of budget preparation having 21.5 percent indicated that they received the information
noted that the political divisions sometimes made politicians annually, 17.2 percent received quarterly, 15.9 percent
oppose budgets due to their political leanings thus budgets monthly while 12.5 percent indicated that they received the
not achieving intended outcomes. information weekly. In line with the transaction cost theory,
The DAs officials indicated that sub-committee members these results support earlier findings by Khan and Hildreth
were the most involved in the budgeting as revealed by 42 (2004) who indicated that all relevant information is not
percent of the DA officials. A further 18.5 percent of the released to the public in a timely and regular manner and
respondents indicated that DA administrators were involved hence the public are not enabled to make informed decisions.
as well as the central government representatives as reported The information should be disseminated to the citizens on
by 17.2 percent of the respondents. The local community timely basis for scrutiny. Budgets formed with citizens’
was involved to a very little extent as revealed by 6.1 percent approval are more viable since the public participation helps
of the respondents. in addressing the major problems affecting the society.
Scrutiny can only be achieved if information is delivered
Table 1. Persons Involved in Budgeting timely, and this will lead to enhanced accountability,
Persons in budgeting Frequency Percent transparency and limited misuse of resources.
Central Government Representative 76 17.2
D.A Senior Administrators 82 18.5
Subcommittees Members 186 42.0
Regional Coordinators 19 4.3
Middle Level Administrators 40 9.0
Local Community 27 6.1
Others 13 2.9
Total 443 100

Source: Authors (2014)

Citizen respondents were requested to indicate the sources

and frequency of information regarding their district
Figure 3. Frequency of Information Dissemination
assemblies. The results presented in Table 2 reveal that 37.6 (Source: Authors (2014))
percent received the information through the radio; 23.3
percent indicated that it was through observations, while 14 As shown in Table 3, public forums, local FM Radios,
percent received it through political rallies. On the other newspapers and use of the local chiefs were the most
hand, 11.5 percent got the information through district preferred modes used to make the budgets public. As noted
assembly newsletters and newspapers respectively. These by Bhatia (2009), the secrecy surrounding budget proposals
 Human Resource Management Research 2018, 8(2): 23-33 29

is contentious. Public forums and local FM radios make a budget practices in the District Assemblies. Approximately
frequency of 38.4% and 33.9% respectively which shows 8.1% of the officials had absolute confidence on the budget
that they are dominant as compared to other platforms of practices for they rated it as very efficient. However, a
information dissemination. Local FM radios have been noted significant percentage of DA officials viewed the budget
to contribute to sharing of budgetary information since their practices as inefficient and their frequency was
audience is large as compared to other platforms of approximately 13.3% of the total.
communication. Public forums are the most popular modes The study proceeded to enquire into citizens’ satisfaction
of publicizing the budgets. The key informants noted that with assemblies’ management of the budgets. The results are
these forums were quite important in the rural settings. From shown in Figure 4.
the focus group discussions, it emerged that chiefs being
influential members in the community were crucial in the
budgeting process for projects by DAs and their participation
and support had a bearing on the citizen’s support for DAs
budgets. The direct cost involved in newspapers make it a bit
challenging for DAs to publicize information using that
mode of communication. This is broadly due to the
inaccessibility of newspapers to the masses especially the
rural populations.
Table 3. Modes Used to Publicize DA Budgets

Modes Frequency Percent

Newspapers 166 17.2 Figure 4. Satisfaction with DAs Management of the Budget
Public Forums 370 38.4 (Source: Authors (2014))
Through the Chiefs 101 10.5
The results show that 40.4 percent of the citizens were
Local FM Radios 326 33.9 unsatisfied while 16.4 percent were extremely dissatisfied
Total 963 100.0 with how the assembly managed the budget (N=963). Only
Source: Authors (2014) 4.6 percent were extremely satisfied with how DAs managed
the budgets. Approximately 11.7% of the citizens were very
The findings of the study imply that the budget proposals satisfied with how the DAs managed the budget. However,
are made public similar to Bhatia’s (2009) observation that 26.9% of the total respondents expressed their opinions that
budgets should be widely discussed to assess their impact, they were just satisfied with the manner in which the DAs
and the public should participate in budget deliberations in a managed the budgets. Therefore since 57% of the citizens
more constructive manner. The findings from the study in expressed dissatisfaction with the way management was
regard to making budgets public also support the transaction done on budget by the DAs, there should be timely reviews
cost theory as espoused by Bech and Pedersen (2005) who to correct areas which are making the citizens dissatisfied.
argue that information sharing on public funds issues reduces This finding can be linked to Goddard and Mkasiwa (2016)
costs associated with information asymmetry such as views that budgeting practices which follow the stipulations
mistrust between the public officials and the citizens. of NPM perspective are expected to have positive impact on
Efficiency of Budget Practices service delivery while budgeting practices that do not follow
best practices are expected to affect service delivery
Table 4. Ratings of Budgeting Practices by DA Officials
negatively.
Ratings Frequency Percent Link between Budgeting Practices and Service
Very Inefficient 15 3.4 Delivery
Inefficient 59 13.3 In this section the study first sought the nature of
Efficient 333 75.2 budgeting practices where statements were rated on a
Very Efficient 36 8.1 five-point Likert Scale (1-Strongly Disagree, 2-Slightly
Total 443 100.0 Disagree, 3-Neutral, 4-Slightly Agree and 5-Strongly Agree).
Source: Authors (2014)
The results in Table 5 indicate that 57.6 percent of the
responding DAs (N=443) strongly agreed that budgeting and
The study also sought to find efficiency of budgeting planning process involves setting targets upon which
practices. The results presented in Table 4 show that majority performance is measured, and 49 percent strongly agreed
of the DA officials (75.2%) rated the existing budgeting that value for money is a key concern in budgeting process.
practices at the District Assemblies as efficient while 3.4 In addition, the results revealed that 42.6 percent of the
percent revealed that they were very inefficient. This finding responding DAs indicated that the budgeting process is
revealed, that majority of the officials are confident with the realistic and practical. Thirty nine percent of the DA officials
30 George Kojo Scott et al.: Role of Budgeting Practices in Service Delivery in the
Public Sector: A Study of District Assemblies in Ghana

strongly agreed that the budgeting processes enables Table 6. Budgeting Practices and Service Delivery
conducting budget reviews and service delivery reviews Std.
Statements Mean
simultaneously. Deviation

Table 5. Nature of Budgeting Practices in the DAs The budgeting process is inclusive and wide
3.99 1.09105
consultations take place
Statements 1 2 3 4 5
Enough resources are allocated to various
The budgeting process is inclusive projects based on clear criteria understood by 3.56 1.22747
and wide consultations take place 3.6 7.7 13.1 33.9 41.7 stakeholders

Enough resources are allocated to The budgeting process is realistic and practical 3.98 1.11437
various projects based on clear Value for money is a key concern in budgeting
criteria understood by 4.08 1.10195
process
stakeholders 7.0 15.6 14.0 35.7 27.7
Addressing marginalization/inequalities key
3.79 1.02209
The budgeting process is realistic concern in budgeting
and practical 4.1 7.9 12.0 33.4 42.6 Budgeting process involves setting targets
4.28 .99910
Value for money is a key concern upon which performance is measured against
in budgeting process 3.4 7.0 13.5 27.1 49.0 The budgeting processes enables conducting
Addressing budget reviews and service delivery reviews 3.98 1.05956
marginalization/inequalities is key simultaneously
concern in budgeting 2.7 7.4 23.0 35.7 31.1
Source: Authors (2014)
Budgeting process involves
setting targets upon which The results linking budget practices and service are
performance is measured against 2.3 4.5 11.1 24.6 57.6 presented in Table 7 and reveal that 33 percent of DA
officials indicated that budgeting practices at the District
The budgeting processes enables
conducting budget reviews and
Assembly facilitated service delivery to a moderate extent
service delivery reviews in while 3.6 percent indicated that budgeting practices
parallel 3.8 6.3 12.6 38.1 39.0 facilitated service delivery to a very low extent (N=443).
Source: Authors (2014) Table 7. Extent to which Budgeting Practices Facilitate Service Delivery

As depicted in the conceptual framework, in order for Ratings Frequency Percent

budgeting practices to influence service delivery, they have Very Low Extent 16 3.6
to be guided by clear policies, be consultative and ensure Low Extent 37 8.4
value for money. These findings are in line with the NPM Moderate Extent 149 33.6
viewpoint and Bartle and Shields’ (2008) position that the High Extent 140 31.6
values of budgeting practices should include accountability, Very High Extent 91 22.8
efficiency and efficacy. Kruk and Freedman (2008)
Total 443 100.0
emphasize that these values are critical for budgeting to play
its rightful role in promoting equity and allocative efficiency Source: Authors, 2014
and consequently ensuring quality public service delivery.
These results can be traced to the study’s conceptual
Further analysis on the link between budgeting and service
framework which shows that budgeting practices have an
delivery was conducted using mean scores and standard
effect on the service delivery at the DAs. Similarly, the study
deviation. The results as presented in Table 6 show that the
results support the NPM tenets as espoused by Savoie (2003)
respondents agreed that the budgeting process was inclusive
which contend that when government practices such as
and wide consultations take place (3.99) and that the
budgeting are made more efficient and responsive to citizen
budgeting processes enabled conducting budget reviews and
needs, they enhance service delivery.
service delivery reviews simultaneously (3.98). The
Results from key informant interviews indicated that the
respondents further agreed that addressing marginalization
budget structure and input by stakeholders into the budget
and inequalities were key concerns in budgeting as indicated
process plays a critical role and influence service delivery in
by a mean score of 3.79. The concern for value for money
the districts. Interviewees also indicated that having
was also emphasized having posted a mean score of 4.08
unrealistic budgets in the assemblies impacted negatively on
respectively. These findings indicate that best practices in
service delivery. These findings seem to agree with Bhatia’s
budgeting were observed in the DAs, consistent with the
(2009) argument that the budget framework should be
findings by Craig and Porter (2003) that best budgeting
accompanied by an account or plan of the performance of the
practices such as efficiency, participation, review and value
fiscal policies and programmes of the government during the
for money need to be observed.
previous year. It is assumed that this account would provide
a basis for ascertaining what has been accomplished, what
should be aimed at, and the appropriate future direction.
 Human Resource Management Research 2018, 8(2): 23-33 31

However, Bhatia (2009) noted that having unrealistic the state and citizens. He further noted that participatory
budgets with objectives which are unachievable can have budgeting in China had improved efficiency in service
challenges in implementing the budgets and hence affect delivery and good prioritization of what the citizens wanted.
delivery of public service negatively. This had led to improvement in service delivery. The results
Hypothesis Testing on the Effect of Budgeting Practices are also similar to the findings by Nayak and Samanta (2014)
on Service Delivery that people’s participation in budgeting had a strong effect
on service delivery. Nayak and Samanta suggested that
The study further used regression analysis to demonstrate
making contributions and raising voices by the participants
the role budgeting practices play towards service delivery as
were the most notable factors influencing service delivery.
shown in Tables 8-10.
Table 8. Model Summary

R R Square Adjusted R Square Std. Error of the Estimate

5. Conclusions and Policy Implications
.205 .142 .140 3.72820 Budgeting practices in the district assemblies in Ghana
Source: Authors (2014)
follow laid-down procedures, with information provided as
part of the process, even though the citizens are dissatisfied
Results in Table 8 indicate that budgeting explained 14.2 with how the budgets are managed due to over emphasis on
percent of the variance in service delivery as measured using non-essential expenditures. Officials on the other hand,
the R2. This means that only 14.2% of the service delivery regard the budgeting practices as efficient, and also feel that
can be affected and influenced by budgeting planning and the processes are inclusive, realistic with target setting which
practices. The remaining 85.8% is influenced by other facilitate service delivery. Improved budgeting practices lead
factors which are outside the model. to improved service delivery, while the reverse holds true.
The timely review of plans by the officials is very essential
Table 9. Analysis of Variance
since it helps in conforming to the dynamic nature of the
Source
Sum of
df
Mean
F Sig.
economy. The citizens’ dissatisfactions would be mitigated
Squares Square through increased public participations in the budgetary
Regression 7524.154 1 7524.154 65.374 .000 processes and planning. This will assist in creating
Residual 50756.541 441 115.094 awareness among the public and enhancing rate of
Total 52987.015 442 participation.
The implications are that the district assemblies should
Source: Authors (2014)
continue to apply laid-down procedures, provide information,
Findings as presented in Table 9 reveal that the model but manage the budgets properly by focusing on activities
used to explain effect of budgeting on service delivery was that are included in the budgets instead of spending funds on
statistically significant (f = 65.374; p < 0.05). This implies non-essentials. Adherence to the budgetary guidelines would
that the model provided statistically significant predictive ensure that there is proper utilization of resources by the
power indicating that budgeting practices can be used to management. Adoption of the budgetary guidelines also
predict service delivery. would be responsible for effective service delivery to the
public. This could be done through broad stakeholders’ input
Table 10. Effect of Budgeting on Service Delivery
and feedback which can be achieved by integrating and
Unstandardized Standardized enhancing the use of innovative communication tools such as
Coefficients Coefficients t Sig. websites, email, Facebook, Twitter and WhatsApp to
B Std. Error Beta supplement the stakeholders’ meetings, discussions and
(Constant) 4.985 .559 8.922 .000 conferences. This is in line with Naidoo (2017) position that
Budgeting .126 .029 .205 4.402 .000 social media tools offer a great opportunity for optimizing
public participation in service deliver processes. For instance,
Source: Authors (2014)
photos shared on Facebook, Twitter or WhatsApp accounts
The results in Table 10 indicate that budgeting practices and groups of the public officials on ongoing or stalled
had a positive and significant effect on service delivery (B = projects in their locality will create awareness, motivate
0.126; p < 0.001). The findings show that a unit change in the citizen action, and improve stakeholders’ contribution to the
budgeting will result to 0.126 units change in service budgeting process. Further, dissemination of information
delivery in the same direction. This positive relationship through these platforms which are widely accessible by
between the two variables implies that when one increases, citizens enhances transparency, accountability and
the other will increase. Therefore, effective budgeting is efficiency among the stakeholders due to public scrutiny.
essential for better service delivery. The results are in This will also reduce information asymmetry and thereby
concurrence with the findings by He (2011) which revealed harmonize the interface between the citizens as principal and
that participatory budgeting cultivated and empowered the DAs officials as agents.
citizens and, in doing so, changed the relationship between
32 George Kojo Scott et al.: Role of Budgeting Practices in Service Delivery in the
Public Sector: A Study of District Assemblies in Ghana

[15] Goddard, A., & Mkasiwa, T. A. (2016). New public

management and budgeting practices in Tanzanian Central
Government: “Struggling for conformance”. Journal of
Accounting in Emerging Economies, 6(4), 340-371.
REFERENCES DOI: 10.1108/JAEE-03-2014-0018.
[1] Ahmad, E., & Brosio, G. (2009). Does decentralisation [16] Goldfinch, S., & Roberts, V. (2013). New public management
enhance service delivery and poverty reduction? Boston: and public sector reform in Victoria and New Zealand: Policy
Edward Elgar Publishing. transfer, elite networks and legislative copying. Australian
Journal of Politics & History, 59(1), 80-96.
[2] Avkiran, N. K. (2001). Investigating technical and scale
efficiencies of Australian universities through data [17] Hamid, K. T. (2013). Good governance and new public sector
envelopment analysis. Socio-Economic Planning Sciences, financial management reform: A panacea, or placebo for
35(1), 57-80. transparency and accountability. A Paper Presented at the
Executive Mandatory Professional Training Programme for
[3] Awio, G., & Northcott, D. (2001). Decentralization and
Fellows of the Chartered Institute of Finance and Control of
budgeting: The Uganda health sector experience.
Nigeria (CIFCN), Abuja, Nigeria.
International Journal of Public Sector Management, 14(1),
75-88. [18] He, B. (2011). Civic engagement through participatory
budgeting in China: Three different logics at work. Public
[4] Bartle, J. R., & Ma, J. (2004). Managing financial
Administration and Development, 31 (2), 122–133.
transactions efficiently: A transaction cost model of public
financial management. In A. Khan & W. B. Hildreth (Eds.), [19] Hope, K. R. (2014). Devolved government and local
Financial management theory in public sector (pp. 1 – 23). governance in Kenya. African and Asian Studies, 13(3),
Westport, CT: Praeger Publishers. 338-358.
[5] Bartle, J. R., & Shields, P. M. (2008). Applying pragmatism [20] Horngren, C.T., Stratton, G.L., Sutton, W.O., & Teall, H.D.
to public budgeting and financial management. Faculty (2004). Management accounting (4th ed.) Toronto: Prentice
Publications-Political Science. Paper 48. Retrieved on 3rd Hall.
December 2015 from
http://ecommons.txstate.edu/polsfacp/48. [21] Imuezerua, E., & Chinomona, E. (2015). Analysing the
Concept of Municipal Budgeting and Service Delivery
[6] Bech, M., & Pedersen, K. M. (2005). Transaction costs theory Pattern in a South Africa’s District Municipality.
applied to the choice of reimbursement scheme in an Mediterranean Journal of Social Sciences, 6(1), 359.
integrated health care system. University of Southern
Denmark. Retrieved fromhttps://www.sdu.dk/-/media/files/o [22] Inkoom, D. K. B. (2011). Ghana's decentralisation: Two
m_sdu/centre/cohere/working+papers/20052bechpedersen.p decades and still crawling & quest. Development, 54(3),
df. 393-399.
[7] Bhatia, H. L. (2009). Public finance. New Delhi: Vikas [23] Jordaan, J. (2007). Contextualising the measurement of
Publishing House. governance in public financial management. Retrieved on
13th May 2017 from
[8] Blumentritt, T., (2006). Integrating strategic management and http://www.repository.up.ac.za/handle/2263/4455.
budgeting, Journal of Business Strategy, 27 (6), 73–79.
[24] Jordaan, J. (2013). Public financial performance management
[9] Broback, U., & Sjolander, S. (2002). Programme support and in South Africa: A conceptual approach. Unpublished PhD
public finance management: A new role for bilateral donors in Thesis, University of Pretoria. Retrieved on 2nd December
poverty strategy work. SIDA Studies No.6. Gothenburg: 2015 from repository.up.ac.za/handle/2263/24808.
Novum Grafiska AB. Retrieved on 13th May 2011 from
http://goo.gl/B7zrh6. [25] Jütting, J., Kauffmann, C., McDonnell, I., Osterrieder, H.,
Pinaud, N., & Wegner, L. (2004). Decentralisation and
[10] Gonçalves, S. (2014). The effects of participatory budgeting poverty in developing countries: Exploring the impact.
on municipal expenditures and infant mortality in Brazil. Working Paper No. 236. Paris: OECD.
World Development, 53, 94-110.
[26] Kahkonen, S., & Lanyi, A. (2001). Decentralisation and
[11] DFiD (2001). Understanding and reforming public governance: Does decentralisation improve public service
expenditure management. London: DFID. delivery? Policy Research Working Paper No. 11382.
Washington D.C.: World Bank Publications. Retrieved on
[12] Ekholm, B. G., & Wallin, J. (2000). Is the annual budget
23rd January 2013 from https://goo.gl/YLJlHR.
really dead? European Accounting Review, 9(4), 519-539.
[27] Khan A. & Hildreth W. B. (Eds.) (2003). Case studies in
[13] Essuman, A., & Akyeampong, K. (2011). Decentralisation
public budgeting and financial management. (2nd ed.).
policy and practice in Ghana: the promise and reality of
Madison Ave., NY: Marcel Dekker, Inc.
community participation in education in rural communities.
Journal of Education Policy, 26(4), 513-527. [28] Khan A., & Hildreth W. B., (2004). Financial management
theory in the public sector. Westport, CT: Praeger Publishers.
[14] Finch, C. (2015). Participation in Kenya’s local development
funds: Reviewing the past to inform the future. World Bank [29] Khan, A., & Hildreth, W. B. (2002). Budget theory in the
Group, Washington, DC. Retrieved on 12th March 2015 from public sector. Westport, CT: Greenwood Publishing Group.
https://goo.gl/oZNR7H.
 Human Resource Management Research 2018, 8(2): 23-33 33

[30] Kinemo, S., Ndikumana, E., Kiyabo, H., Shillingi, V., Kwayu, [43] Paul, E., & Leruth, L. (2006). A Principal-Agent Theory
M. D., & Andrea, P. T. (2015). Human resource management Approach to Public Expenditure Management Systems in
in a decentralized context: Case of Dodoma Municipal and Developing Countries. IMF Working Papers, 6204(200),
Chamwino District Councils. Retrieved on 12th March 2015 1-43.
from https://goo.gl/ut2dZz.
[44] Pintea, M., Lacatuş, V., & Deceanu L. (2013). Purpose for
[31] Kruk, M. E., & Freedman, L. P. (2008). Assessing health budgeting: Literature review. Journal of Economic Literature,
system performance in developing countries: a review of the 163-170.
literature. Health policy, 85(3), 263-276.
[45] Robinson, M. (2007). Does decentralisation improve equity
[32] Lapsley, I., & Ríos, A. M. (2015). Making sense of and efficiency in public service delivery provision? IDS
government budgeting: An internal transparency perspective. Bulletin, 38(1), 7-17.
Qualitative Research in Accounting & Management, 12(4),
377-394. [46] Russell, E. W., & Bvuma, D. G., (2009). Alternative service
delivery and public service transformation in South Africa.
[33] Latema, M. O. (2013). Business models for revenue International Journal of Public Sector Management, 14 (3),
generation and enhancemenadopted by county governments 241 – 265.
in Kenya. Unpublished MBA Thesis, University of Nairobi.
Retrieved on 12th April 2015 from https://goo.gl/EasQyj. [47] Samanta, D., & Nayak, N.C. (2014). Participation and
Decision Making: A Study from Rural West Bengal. In P.P.
[34] Lee, R. D. (2012). Public budgeting systems. Sudbury, MA: Balan, S. George & T.P. Kunhikannan (Eds.)
Jones & Bartlett Publishers. Decentralisation and Development: Experiences and
Experiments, (pp. 113-128) Kerala Institute of Local
[35] Lu, E. Y., & Willoughby, K. (2015). Performance Budgeting Administration (KILA).
in American States: A Framework of Integrating Performance
with Budgeting. International Journal of Public [48] Siswana, B. (2007). Leadership and governance in the South
Administration, 38(8), 562-572. African Public Service: An overview of the public finance
management system. Doctoral Dissertation, University of
[36] Ma, J., & Yu, L. (2012). Why money cannot be spent as Pretoria, South Africa. Retrieved on 2nd December 2015 from
budgeted? Lessons from China's recent budget reforms. http://repository.up.ac.za/handle/2263/28035.
Journal of Public Budgeting Accounting and Financial
Management, 24(1), 83. [49] Speer, J. (2012). Participatory governance reform: A good
strategy for increasing government responsiveness and
[37] Mangan, J., Lalwani, C., & Gardner, B. (2004). Combining improving public services? World Development, 40 (12),
quantitative and qualitative methodologies in logistics 2379-2398.
research. International Journal of Physical Distribution &
Logistics Management, 34 (7), 565 – 578. [50] Tsheletsane, I., & Fourie, D. J. (2014). Factors hindering
public financial management and accountability in South
[38] Marino, A. M., & Matsusaka, J. G. (2005). Decision Africa. African Journal of Public Affairs, 7 (4), 42-56.
processes, agency problems, and information: An economic
analysis of capital budgeting procedures. Review of Financial [51] Tyer, C., & Willand, J. (1997). Public budgeting in America:
studies, 18(1), 301-325. A twentieth century retrospective. Journal of Public
Budgeting, Accounting & Financial Management, 9(2), 189-
[39] Michel, R. G. (2002). Organization and Design of an 219.
Effective Budget Function. Chicago, IL: Government
Finance Officers Association. [52] Van Dooren, W., Bouckaert, G., & Halligan, J. (2015).
Performance management in the public sector. London:
[40] Naidoo, C. (2017). A framework for optimising public Routledge.
participation for effective municipal service delivery.
Retrieved on 22nd July 2018 from [53] Wang, R. (2002). Political dimensions of county government
http://hdl.handle.net/10500/22953. budgeting in China: A case study. IDS Working Paper No.
166. Retrieved on 19th September 2015 from
[41] Nayak, N. C., & Samanta, D. (2014). Understanding the role www.ids.ac.uk/ids/bookshop/wp/wp166.pdf.
of participation in public service delivery: Evidence from
rural West Bengal, India. International Journal of Public [54] Welham, B., Krause, P., & Hedger, E. (2013). Linking PFM
Administration, 37, 875–884. dimensions to development priorities. Retrieved on 7th
September 2015 from kms2.isn.ethz.ch.
[42] Norton, A. (2009). The potential of using sustainable
livelihoods approaches in poverty reduction strategy papers. [55] World Bank (2011). The role of public financial management
London: Overseas Development Institute (ODI). for PRS Implementation. Retrieved on 8th September 2015
from http://goo.gl/Zdm17Q.