A CRITICAL EVALUATION OF THE CHALLENGES IN BUDGETING AND STRATEGIC PLANNING WITHIN DJOUM CITY COUNCIL, CAMEROON

CHAPTER ONE INTRODUCTION 1.1 Background of the Study A budget represents a quantified expression of a proposed action plan over a specific period, serving as a tool that helps management organize and execute that plan effectively (Ambe & Maleka, 2016). It integrates both financial and non-financial aspects of an organization's intended activities, acting as a strategic framework that guides operations over time. Budgeting is indispensable for any organization that seeks to function efficiently and deliver quality services, as it involves careful planning and spending. Budgets serve multiple functions: they help managers forecast income sources, control spending, coordinate organizational activities, and communicate key information to stakeholders. Additionally, budgets summarize intended actions across various departments or units (Badenhorst, 2016). They help organizations determine priorities by allocating limited resources to high-importance activities, while reducing spending on less critical areas (Cruywagen, 2019). Budgets are typically forward-looking and are used as benchmarks for measuring actual performance. They are not the ultimate goal but a means to achieve organizational objectives. Moreover, budgets define the responsibilities of individuals who are accountable for specific targets, making it easier to assess performance at the end of the budget cycle. For this reason, the budgeting process often involves those who will be responsible for achieving the set goals. This approach is necessary because higher-level authorities may not always possess the detailed knowledge, time, or specialized skills required to prepare every aspect of the budget (Essop, 2017). This shared responsibility is one of the few similarities between financial processes in public and private institutions. However, many institutions—particularly public ones—face challenges in budget implementation due to the complexities of estimating program performance and economic variables accurately (Louwe, 2019). Budgets may require revision due to unforeseen developments or significant changes in cost estimates. Budget reviews are therefore critical for identifying errors and ensuring proper implementation. Routine evaluation of budget performance is essential for effective execution and for detecting any financial irregularities. A key issue faced by many stakeholders is the absence of budget reviews once a budget is approved. Ideally, the entire budget process should be managed with robust initial planning, official approval, and ongoing monitoring (Manyathela, 2019). There are generally three phases of budgeting: the pre-budget stage, the active budget period, and the post-budget review stage. Djoum City, located in the South Region of Cameroon, is a prominent municipality characterized by a diverse population and a dynamic economy. The city’s local government—the Djoum City Council—is responsible for managing development initiatives and public services. The effectiveness of this administration largely depends on sound budgeting and strategic planning (Ndongo, 2019). Despite its importance, the Djoum City Council has faced numerous challenges in these areas, limiting its ability to deliver desired outcomes to its citizens. Operating in a complex political and economic environment, the council relies heavily on allocations from the national government and has limited financial autonomy (Essomba & Mbeng, 2021). This dependency affects the council’s ability to effectively plan and manage its resources in response to local needs. Another challenge lies in the lack of timely and accurate data, which hinders informed decision-making and leads to inefficient resource allocation and misalignment between the council’s goals and community needs (Tchatchoua, 2021). Additionally, there are concerns regarding the skill levels of staff involved in budgeting and strategic planning, which can result in suboptimal execution of projects (Mbeng, 2020). Transparency and accountability in fiscal management also remain major concerns. Reports of corruption and financial mismanagement—particularly within the Djoum City Council—have eroded public trust and affected the efficiency of governance (Ngassam, 2019). Despite these issues, the Djoum City Council holds significant potential to drive social and economic development in the region. To fulfill this role effectively, the council must address the existing challenges in budgeting and planning by improving fiscal management, promoting transparency, and making optimal use of available resources. This research seeks to evaluate the challenges confronting the Djoum City Council in its budgeting and strategic planning efforts and aims to offer practical insights and recommendations for improving governance and performance. Ultimately, this study is intended to support better local governance and contribute to the sustainable development of Djoum City. Therefore, the researcher aims to examine the issues surrounding budget and strategic planning in Djoum City Council, Cameroon. 1.2 Statement of the Problem Efficient municipal governance hinges on proper budgeting and strategic planning. However, the Djoum City Council faces significant difficulties in these areas, affecting its ability to deliver quality public services and promote long-term development. Key issues include limited financial resources, insufficient access to reliable data for sound decision-making, and a lack of expertise in budget and strategic planning processes (Ngassam, 2019; Mbeng, 2020). These challenges lead to poor resource allocation, inefficient project execution, and a lack of transparency and accountability in financial management (Tchatchoua, 2021). Furthermore, the city’s rapid growth and evolving needs require a proactive and structured approach to planning that addresses current challenges while preparing for future development. Unfortunately, the council often struggles to align its strategic priorities with available resources and the actual needs of its constituents (Essomba & Mbeng, 2022). This misalignment undermines performance and results in missed opportunities for improving infrastructure, public services, and economic prospects. The situation is made worse by poor communication and collaboration, both within the council and with external stakeholders, which leads to fragmented planning and disjointed implementation of development projects (Ngassam, 2019). Addressing these issues is critical for enhancing the effectiveness of the council's budgeting and strategic planning. This study aims to explore and assess these challenges, offering practical solutions to enhance governance, resource use, and overall municipal performance in Djoum City Council. 1.3 Objective of the Study The general objective of this study is to assess the challenges associated with budgeting and strategic planning in Djoum City Council, Cameroon. The specific objectives are: i. To analyze the methods employed by Djoum City Council for budgeting and strategic planning. ii. To investigate the impact of budgeting and strategic planning on the council's capacity to maintain fiscal sustainability. iii. To examine the specific challenges faced by Djoum City Council in the budgeting and strategic planning process. iv. To offer recommendations for improving budgeting and strategic planning practices in the council. 1.4 Research Questions The study will be guided by the following research questions: i. What methods are used by Djoum City Council for budgeting and strategic planning? ii. What impact do budgeting and strategic planning have on the council’s ability to maintain fiscal sustainability? iii. What challenges does Djoum City Council face in its budgeting and strategic planning efforts? iv. What recommendations can be made to improve budgeting and strategic planning in Djoum City Council? 1.5 Significance of the Study This research will be valuable to the following groups: Policymakers: The study may generate practical recommendations to enhance budgeting and strategic planning in the council, thereby supporting more informed and effective policy decisions. Academic Community: The research will contribute to existing literature on local governance, fiscal planning, and strategic management, particularly within the Cameroonian context. It can serve as a reference for future academic work and comparative studies in municipal administration. 1.6 Scope of the Study This study is focused specifically on the challenges of budgeting and strategic planning within Djoum City Council, Cameroon. It will empirically explore the methods the council uses for budgeting and planning, the impact on fiscal sustainability, the difficulties encountered, and will propose practical recommendations for improvement. 1.7 Limitation of the Study As with any academic project, a few limitations were encountered during the course of this study. One major constraint was limited funding, which affected the ability to access relevant literature, collect data, and conduct interviews. As a result, the researcher opted for a manageable sample size. In addition, the study was conducted alongside other academic responsibilities, which reduced the amount of time available for in-depth research. 1.8 Definition of Terms Budgeting: The process of creating a financial plan that outlines how funds are to be allocated and managed within an organization or government body. In this study, it refers to the planning of municipal finances in Djoum City Council. Strategic Planning: A structured process through which an organization sets long-term goals and determines how to allocate resources effectively to achieve those goals. For Djoum City Council, it involves charting a developmental path for the city. Djoum City Council: The local government body responsible for governance, public services, and development projects within Djoum, Cameroon. Challenges: The problems or barriers encountered in the implementation of budgeting and strategic planning, such as financial limitations, poor data, or inadequate skills. Fiscal Management: The process of supervising and managing financial resources, including budgeting, spending, and reporting. Resource Allocation: The practice of distributing limited resources—such as funding, personnel, and equipment—to various projects or departments based on priorities. REFERENCES Ambe, I.M. & Maleka, T., (2016). ‘Exploring supply chain management practices within municipalities in the West Rand district’, Problems and Perspectives in Management 14(3–3), 657–666. Badenhorst, A., (2016). ‘Prioritising the implementation of practices to overcome operational barriers in reverse logistics’, Journal of Transport and Supply Chain Management 10(1), a240. Cruywagen, V., (2019) ‘Ammunition shortage leaves cops at risk’, Cape Argus News, 28 August, viewed 23 January 2020, from https://www.iol.co.za/capeargus/news/ ammunition-shortage-leaves-cops-at-risk-31418203. 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