Public Financial Management: A Case of Public Universities in Uganda

Abstract

The study addressed Public Finance Management (PFM) in Public Universities in Uganda. PMF, also called the public sector economics, is the government’s strategy for managing revenue, expenditure and taxation. It oversees how the government’s cash flow planning, coordination and investment are managed. The study delved to identify funding sources of public universities in Uganda; evaluated the current financial management practices within Public Universities in Uganda; examined the transparency and accountability mechanisms used for financial transactions within Public Universities in Uganda; discussed challenges encountered by public universities in Public Finance Management; and proposed recommendations for enhancing the overall public financial management system. Data collection strategy included extensive desk reviews of documents and previous researches on higher education. The study was purely qualitative and was conducted both face-to-face and online. In its findings, the study established various sources of funding for Public Universities in Uganda; confirmed that there is drastic decline and untimely funding to Public Universities in Uganda; highlighted the incidences of mismanagement and lack of transparency; and enumerated the challenges encountered by the sub-sector in Public Finance Management. The study concluded that there is drastic decline and untimely funding of Public Universities. Secondly, it noted that low and untimely funding negatively impact on achievement of the Universities’ core functions. Thirdly, it was established that funds injected into Universities are mismanaged and lack proper accountabilities. In its recommendations, the study proposed that the Universities should strengthen their Public Private Partnership engagements; carry out timely audits; reinforce their staff capacities in teaching and research as well as in publications and align public universities’ funding to be performance-based; and lastly, position Public Universities to be more innovative so that the economy continues to grow, remain viable and sustainable.