Budgetary Challenges, Financial Innovations, and Budget Management Efficiency of Occidental Mindoro State College

Abstract

This study employed a descriptive correlational research design to examine the relationship among budgetary challenges, financial innovations, and budget management efficiency at Occidental Mindoro State College (OMSC). The descriptive component assessed stakeholders’ perceptions of these variables, while the correlational component analyzed their interrelationships. Five key stakeholder groups, which include the budget staff, campus administrators, faculty, finance personnel, and students were purposively selected and proportionally represented through stratified sampling. Findings indicate that OMSC experience moderate budgetary challenges, mainly due to delayed government fund release, complex financial regulations, and limited planning capacity. Despite these constraints, the institution demonstrates high adoption of financial innovations, such as digital budgeting systems, performance-based budgeting, stakeholder engagement, and revenue diversification. Consequently, budget management efficiency is high, particularly in transparency, accountability, monitoring, and control. Correlation and regression analyses reveal that internal factors, especially financial planning capacity and stakeholder involvement, significantly enhance efficiency, whereas funding-related challenges have minimal effect. The study highlights that financial innovations and strong internal planning are key drivers of effective budget management at OMSC.