Abstract:
The main purpose of the study was to examine the influence of financial management and the effectiveness of government programmes and how this relationship is mediated by capacity building in Budaka DLG in Uganda. The study specific objectives were; to assess the effect of financial management on the effectiveness of government programmes in Budaka DLG; to examine the connection between financial management and capacity building of government programmes in Budaka DLG; to establish the link between capacity building and the effectiveness of government development programmes in Budaka DLG; and to assess the mediation effect of capacity building on the relationship between financial management and the effectiveness of government programmes in Budaka DLG. The study employed a quantitative approach and a cross-sectional design; a study population of 95 NUSAF community programmes were considered. Krejcie and Morgan table (1970) was used to obtain a sample of 76 NUSAF community programmes; using a simple random sampling technique, the researcher accessed the sampled programmes. 76 community NUSAF programmes were the unit of analysis while 304 were the unit of inquiry. The study findings revealed that financial management has a positively significant impact on effectiveness of government programmes, financial management and capacity building, capacity building and the effectiveness of government programmes while capacity building partially mediates the connection between financial management and effectiveness of government programmes. Thus, in reference to the study findings, it was recommended that the government should ensure proper financial planning and budgeting that considers adequate capacity building of beneficiaries for proper programme implementation.
Similarly, funds allocated to capacity building should be rightly used and this should be ensured by emphasizing and empowering programmes managers to properly adapt, lead and manage to ensure compliance to programme terms of reference.
