BUDGETARY PROCESS ON FINANCIAL PERFORMANCE OF NON-GOVERNMENT ORGANIZATIONS IN BIHAR

Abstract

The main objective of this study was to establish the effect of budgetary process on financial performance of NGOs in rural development and health sector in Bihar, applying priority based budgeting theory. Regression results revealed that budgetary process had significant influence on financial performance of NGOs in  rural development and health sector in Bihar and tests for significance also showed that the influence was statistically significant (r=0.419). Good budgetary management practices therefore positively influence financial performance of NGOs in rural development and health sector in Bihar. On formulation of policy, both management of NGOs and the Government should explore and implement sustainable policies and regulations that are geared towards improving, budgetary management as a way of accelerating financial performance of NGOs.