FACTORS AFFECTING THE BUDGETARY PRACTICE EFFECTIVENESS; EVIDENCE FROM ETHIOPIA'S PUBLIC SECTOR ORGANIZATIONS IN ASSOSA

The main purpose of this study was to investigate the factors that affect budget practice effectiveness in the Assosa Zone finances offices. From the total population of 659, (Watson 2001) formula was used to determine sample of 248 respondents from management teams, the internal and external auditors, budget experts, finance officers, tax and planning experts of the selected public organization were the sources for the required data to the researcher through the questionnaires administered and interview. The SPSS version 32.0 was used to analyze the data using descriptive statistics, including mean, standard deviation and logistic regression used to analyze inferential output. For this study, five independent variables were identified including budgeting process, employee motivation, accounting reporting, monitoring activities, information and communication. The dependent variable is degree of budget practice effectiveness which was measured under binary logistic regression. According to the logistic regression output, all the explanatory variables were contributing for the budget practice effectiveness in the public sector significantly and positively. The odd ratio of all independent variables are greater than one to infinity except budgeting process which indicates the event is more likely to happen in the comparator and the predictors explain the outcomes. All of these five independent variables are making 62% of the contributions for budget practice effectiveness in the public organization. T0hen, the researcher recommends that public organizations should understand the contributions of these five variables collectively significant and their odd ratio wer