Dissertation (MA Public Administration)This is a study about an assessment of the factors influencing community participation in the decentralized planning and budgeting. Specifically, this study intended to examine the nature of planning and budgeting process, identify factors influencing community participation, and explore challenges for effective community participation in planning and budgeting process. A sample of 98 respondents was selected from a population of 9000 inhabitants for the study through stratified sampling procedure. Both random and purposeful sampling procedures were used to draw a sample of 98 respondents. Questionnaires, interview and focus group discussion methods were employed for data collection. SPSS was employed for data analysis in which results were presented, discussed and conclusion drawn. The study revealed that, the community had knowledge on participatory planning and budgeting. NGOs were not involved in planning and budgeting process. Furthermore, citizens were neither involved in the planning and budgeting formulation process nor participated in the approval of the plans and budget. Political decentralization was the factor influencing community participation in planning and budgeting. Lack of capacity among stakeholders and lack of elected district citizen executive officers were the existing challenges in enhancing community participation in planning and budgeting. The study recommended that the government should ensure that the mechanisms used to nominate members in the planning and budgeting process must be chosen based on their ability to reach all stakeholders and collect their needs and priorities. Furthermore, NGOs and CSOs should be involved in sensitizing and empowering local people to effectively participate in the planning and allocation of resources through the budgeting process.