Modelling budget management for public service in South African Municipalities: A structural equation modelling approach

Background: For more than two decades, many municipalities have failed to render services effectively because of lack competency and budget management skills manage budgets. This has resulted in either over or under expenditure, which ultimately leads poor service delivery.Aim: study aimed develop a model improve public South African municipalities.Setting: Three the Western Cape, Eastern Cape Free State are areas where data were collected by researchers.Methods: A quantitative research approach was employed an online questionnaire used for collection from 261 participants three municipalities. structural equation modelling model.Results: The results revealed that risk (RM), cash flow (CFM) employee perceptions positive impact on management; whereas CFM general compliance with legislative consideration (LC) negative impact, planning (BP) revenue expenditure (REM) low service.Conclusion: highlights key factors (i.e. RM, BP, CFM, LC REM) as result managers at various levels fail budgets effectively. proposed adds new insights respond challenges. It is recommended must their effective service. Findings this contribute existing body knowledge proposing Africa.