Dissertation (MA Business Administration)Tanzania is one of the countries that have introduced the e-budgeting system up to the local government authorities in the country. However, huge funds are lost in lower local government authorities in Dodoma government because of poor budgeting system. There are reported double allocation, errors and miss use of funds, that continues on the lower level of government. Therefore, this study examined the effect of e-budgeting in the financial performance of lower local government authorities. Using a case study design, data were collected from 47 respondents through questionnaires and interviews. The respondents of the study included District Planning Officers (DPO), District Executive Director (DED) and staffs from ICT department. The data were analyzed using descriptive analysis and Varimax rotation with Keiser normalization. The findings showed that e-budgeting in lower local government authorities are not used effectively to contribute to the financial performance. In specific, there is limited digitalization of budgetary procedures, the extent information technology is used and staffs competence in the preparation of e-budgeting is needed to enhance the financial performance. The study recommended the central government to provide enough financial resources to facilitate the application of e-budgeting.