Effects of Budget Practices and Control on Performance of Local Government Projects: A Case of Lusaka City Council

Abstract

Local governments play a crucial role in delivering essential services and implementing development projects that improve the well-being of citizens. However, their ability to execute these projects effectively is often determined by the robustness of financial management and budget practices. The primary objective of this research was to investigate the effects budgeting and financial management procedures used in Lusaka City government projects. This study was underpinned on the Agency Theory, Resource-Based View (RBV) Theory, and Systems Theory. The study employed a concurrent mixed - methods research approach in which quantitative data was collected through survey questionnaires and qualitative data through semi - structured interviews. Key findings revealed that 49.4% of participants disagreed that stakeholders participate in budget planning, while 37% strongly agreed that stakeholder involvement remains a significant challenge. Furthermore, 87.7% of respondents reported that funds are not disbursed on time, and 63% agreed that delays in budget approval hinder effective project implementation. Notably, 74.1% of participants (strongly agreeing and agreeing) supported the introduction of a new budget and financial control framework, recognizing its potential to improve resource allocation, reduce wastage, and enhance project outcomes. The strongest positive correlation with project performance was observed for budget planning (r = 0.623, p < 0.01), indicating that thorough planning significantly enhances the likelihood of project success. The study concluded that enhancing stakeholder participation, ensuring timely fund disbursement, and addressing delays in budget approval are essential to improving project performance. It further went on to recommend implementing accountability mechanisms, strengthening financial oversight, and fostering transparency through a revised budget framework. This study contributes to the body of knowledge by providing empirical evidence on the challenges of budget practices in local government. It proposes a practical framework emphasizing stakeholder engagement, efficient financial controls, and continuous improvement to optimize budget processes and promote sustainable project success. Key words: financial management, budget planning, project performance