A Thesis/Dissertation Submitted in Partial/Fulfillment of the Requirements for
the degree Masters of Science in Accounting and Finance of Mzumbe University
The study aimed at assessing budget and budgetary control in enhancing financial
performance of an organization. Specifically the study focused on identifying the
budgeting process of TANESCO, assessing the trend of budget performance of
TANESCO from the year 2006-2012, and to determine the contribution of budget in
the financial performance of the company.
The study adopted a case study research design as the best way of collecting data and
assessing the budget and budgetary control in enhancing financial performance of an
organization. The study comprised 80 respondents from TANESO-Headquarter.
Questionnaire, interview and group discussion were used to collect data. Data were
presented into tables, graphs and charts for easy analysis and discussion of findings.
The study findings indicated that budgeting process starts with identification of
financial objectives and it end up with monitoring, adjustments and providing
feedback for the necessary corrective measures. Also the study indicated that
TANESCO is experiencing negative variance in its budget trend for each financial
year and lastly the study revealed that budget and budgetary control contribute much
to the effectiveness of the organization.
The study concluded that in order to enhance the financial performance of
TANESCO there must be proper control and management of the organization’s
budget. The study therefore; recommended that in order to enhance performance
budgetary control need to be done from the beginning of the budgeting process until
the end of the budget implementation and formulation of the new budget.