Examining the Relationship Between Budget Allocation, Procurement Systems, and Financial Efficiency at the Royal University of Bhutan
DOI:
https://doi.org/10.54417/jaetm.v6i1.153Keywords:
Procurement process, budget allocation, strategic planning, capacity building, financial efficiency, and fund utilisationAbstract
This study investigates the effect of budget allocation and procurement processes on the Effective utilisation of funds within the Royal University of Bhutan (RUB)’s constituent colleges, institutions central to Bhutan’s intellectual and developmental aspirations in the country. Although financial management is widely acknowledged as a strategic priority for advancing academic infrastructure, reports by the Royal Audit Authority (2022-2024) highlight persistent discrepancies and irregularities in fund utilisation and procurement practices across several colleges. The study aims to examine how budgets are utilised, procurement processes are implemented, and to assess the combined impact on the overall performance of the colleges. The study adopts a mixed-method approach, a qualitative data from 11 relevant participants and quantitative data from 73 respondents, including Presidents, Deans, Heads of the Department, and other relevant officials. The data were collected via structured survey and interview, with quantitative data analysed using R Studio and Excel for all descriptive and inferential statistics, while qualitative data was analysed using thematic analysis. Visualisation presentations, including charts, tables and graphs, were used to enhance the interpretation. Findings reveal that 61% of respondents felt budget processes were moderately familiar, and they perceived budget allocation guidelines as unclear and expressed concerns over limited directions and insufficient funding, while 65% reported procurement delays affecting financial efficiency. The Chi-square test result (χ² = 10.01, df = 20, p < 0.05) confirmed that fund utilisation effectiveness and budget allocation with strategic goals have a limited correlation. Conversely, Spearman’s rank correlation (ρ = 0.83, p < 0.01) reinforced the strong relationship between effective procurement and improved fund utilisation. The thematic analysis result further indicates that limited institutional capacity and compliance issues hampered procurement practices, impeding timely service delivery and effective fund usage. The study concludes that enhancing budget clarity, aligning financial practices with institutional goals, and strengthening procurement capacity are vital to improving financial governance across the colleges. The insights contribute to evidence-based policy recommendations aimed at aligning financial management with the university's strategic goals and promoting sustainable institutional development.
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