Public Financial Management: Identify and Assessing the Challenges of the Budgeting System

Abstract

The purpose of this research is to identify and evaluation the challenges of the budgeting system. The budgeting system must ensure accountability and efficiency in the use of public funds and facilitate the achievement of public goals in the long run. The research question is what challenges the budgeting system in the country faces that the goals of budgeting are not achieved. A survey plan was prepared and information was gathered through a distributed questionnaire among experts from the Management and Planning Organization, the Ministry of Economic Affairs and Finance, the Supreme Audit Court and faculty members. The challenges of budgeting in the budget design phase are due to the weakness of the planning system. Optimistic forecast revenue and continuous budget deficits, unbalanced budget approval, un-economic distribution of subsidies, inefficient use of resource, high share of staff costs, inefficient administrative structure, poor control system, tax system inefficiency, poor financial reporting and low transparency, poor response system The adequacy of the Court of Audit's accountability, the impartiality of the proceedings, and the ineffectiveness of judicial action are among the challenges of the fiscal system. Identifying these challenges provides a framework for corrective action and affects the effectiveness of budgeting. This research provides a list of the challenges of the budgeting system in the four stages of designing and formulating a budget bill, approving, implementing and evaluating the presentation and profound understanding of the reasons for failure to achieve the intended goals and provides a basis for reforming the budgeting system.

Keywords

• budgeting challenges
• performance based budgeting
• new public financial management