Central government patronage, donor aid, and budget performance in local government: testing a mediation effect

Drawing on network and fiscal federalism theories, we investigated central government patronage and donor aid as antecedents of budget performance in local government (LG). A mixed methods design with data collected from 18 LGs, two ministries, and four donor agencies in Uganda was employed. Results revealed that both central government patronage and donor aid predict budget performance. Moreover, autonomy does not mediate the interactions as initially hypothesized. Implications for theory and practice are discussed and future research direction is provided.