A Dissertation Submitted to Mzumbe University, Dar es Salaam Campus College in Partial Fulfillment of the Requirements for the Award of Master Degree in Accounting and Finance (MSc-A&F)This study intended to assess the challenges of budgetary control system in local government authorities in Tanzania. This study was based on a survey of local government authorities in Tanzania with intention to investigate the effectiveness of budgetary control system and its impacts on organization performance. The study was conducted in coast region at Kisarawe district council. The area of study was selected for a number of reasons. First; Coast region is near to Dar es Salaam which is the commercial city of Tanzania and headquarters of local government authorities, where high level of budgets preparation methods is expected and effectective budgetary control organs are also expected to be establish. The selections also based on expertise on budgetary control system are available. Second it was assured that Kisarawe is facing more challenges on budgetary control system than any other peripheral districts. Third the area is easily accessible, from Mzumbe University- Dar es Salaam Business School, whenever additional data of the study were needed. A sample of 50 out of 185 respondents, which was 37%, was selected for the study. The study on the sample revealed that: budgets are effectively prepared, local government authorities have reasonably effective budget control but the budgetary control system used in local government authorities is effective. The study concludes that incremental budgetary control system used in local government authorities in Tanzania is ineffective ;and that the local government authorities should adapt to another budgetary control system; and zero base budgeting system is more appropriate and suitable