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

the purpose of this research is to identify and assess the challenges of the budgeting system. The budgeting system should ensure accountability and efficiency in the use of public funds and, in the long run, facilitate the achievement of public goals. The question of research is that are there challenges in budgeting system that those objectives are not met.

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 findings show that budgeting challenges in budget formulation phase are due to the weakness of the planning system. Optimistic forecasts of revenues and continuing budget deficits, unbalanced budget, uneconomical distribution of subsidies, inefficient consumption of resources, high share of staff costs, inefficient structure and corruption, poor control system, inefficient tax system, governmental size, poor financial reporting and low transparency, weak of accountability, adequacy of the Supreme Audit Court's and audits, non-preventive of inspection and ineffectiveness of the judicial treatment are the challenges of the budgeting.

Identifying these challenges provides a framework for corrective actions and affects the effectiveness of budgeting. This research presents a list of budgeting challenges in the four stages of formulation, approval, execution and evaluation of budget. Provides a deeper understanding of the reasons for not fulfilling the goals and basis for reforming the budgeting system.