Examining the Effectiveness of Budgeting and Financial Management in Public Institutions: A Case Study of Chibombo Town Council

This study provides a critical examination of the effectiveness of budgeting and financial management practices in public institutions, offering a critical examination of the profound inefficiencies in budgeting and financial management practices, using Chibombo Town Council as a case study. Against a backdrop of systemic fiscal governance failures in Zambia, it argues that weak financial controls, inaccurate forecasting and a pervasive lack of transparency are not merely administrative shortcomings but fundamental barriers to effective service delivery. Crucially, this research establishes a direct causal link between these financial management failures and the impediment of public service delivery. Employing a mixed-methods approach and a case study design, the research argues that despite the existence of formal Public Financial Management (PFM) frameworks, their practical implementation is severely undermined by entrenched operational deficiencies. The findings reveal profound inefficiencies: budgeting processes are characterized by a lack of transparency, inadequate stakeholder involvement and misalignment with strategic goals, while financial management is crippled by ineffective internal controls and outdated systems. The study posits that technical reforms are insufficient without concurrently addressing the pervasive issues of capacity constraints, political interference and a culture of impunity. Consequently, this paper contends that holistic public financial management (PFM) reforms; prioritizing robust internal controls, enhanced stakeholder participation, and modernized systems, are not optional but imperative. These reforms are a prerequisite for breaking the cycle of resource wastage, rebuilding public trust and achieving sustainable development goals. The study provides empirically grounded recommendations for transforming budgetary processes to ensure public funds directly and effectively serve citizen needs.