Abstract:
Budgeting is a very crucial tool that helps in the control of resources in any organisation. The study observed the role of budgeting on financial performance in the county government of Nyeri. The main study objective was to evaluate the role of budgeting in Nyeri County and specific objectives were; to determine the role of revenue planning, revenue allocation, revenue control and government regulations in Nyeri County. The study employed a case study research design and it involved both quantitative and qualitative methods. The targeted population was ten ministries in the county government of Nyeri from finance departments were 50 respondents were questioned. Primary data and secondary data was both collected for the study. The study used the census as the target population was small. The main instrument of data collection was questionnaires. Data collected was tabulated and the descriptive statistics were used to analyze data and frequencies and percentage were used. Spearman's rho correlations were used to establish the relationship between the independent variables and dependent variable. The findings showed that the public does not appreciate the way revenue planning is done in the county and the funds from the national government are not enough to cover the recurrent and development expenditures. It supports that if the funds are increased beyond current level it can improve the financial performance of the county. The revenue allocation is fairly done but the expenditures of the county exceed the total revenue. The revenue control should be done regularly but should be done in a way to create flexibility over various activities that are necessary for the growth and financial performance of the county. Government regulations support the county government financial performance by enhancing the innovative techniques in using public resources in order to achieve planned results. It has ensured that there is accountability, transparency and fiscal responsibility in the county. It is recommended to increase funds to allow all the budgeted plans of the county to be implemented and also to improve revenue planning and informing the public how the revenue planning is done. The allocation of funds should be more in the remote areas and allocate funds to help in capacity building. Revenue control should be done regularly and financial reports to be done on time.
