Investigating the Effect of Strategic Financial Planning on Budget Absorption in Public Universities

This research aims to reconceptualise budget absorption by moving beyond procedural explanations and examining the strategic, organisational, and contextual determinants that shape financial execution in public universities. In terms of methodology, the study adopts a qualitative, theory-driven review design grounded in an integrative analysis of peer-reviewed literature, policy documents, and established management and public finance theories. Strategic Management Theory, PFM Theory, Capability Theory, Contingency Theory, and Institutional Theory are synthesised to develop an explanatory model of budget absorption. Data Analysis used critical thematic and comparative analysis of extant literature, incorporating reviewer-informed perspectives to interrogate areas of theoretical convergence and divergence. Organisational capacity is analytically positioned as a mediating construct, while the government policy environment is examined as a moderating factor influencing the strategic planning–budget absorption relationship. Findings: The review reveals that budget under-absorption cannot be adequately explained by regulatory or procedural constraints alone. Instead, weak strategic financial planning, limited organisational capabilities, and misalignment with the policy environment significantly constrain effective budget execution. The findings further highlight the importance of institutional adaptability and capability development in enhancing absorption outcomes. Limitations of the Research: As a conceptual and literature-based study, the research does not include primary empirical data, limiting its ability to establish causal relationships. The proposed framework, therefore, requires empirical validation across different institutional and policy contexts. In terms of Research contributions, the study advances the literature by proposing a theoretically integrated conceptual framework that foregrounds strategic planning and organisational capacity as central drivers of budget absorption. By aligning the analysis with Uganda’s National Development Plan IV, the African Union Agenda 2063, and cross-cutting concerns such as climate change and vulnerable groups, the paper enhances contextual relevance and provides a robust foundation for future empirical research and policy reform in public university financial management.