THE IMPACT OF FINANCIAL MANAGEMENT STRATEGIES AND DEBT CONTROL IN PUBLIC ENTERPRISES

This study examines the impact of financial management strategies and debt control on the performance of public enterprises. Public enterprises play a critical role in economic development; however, their effectiveness is often undermined by financial mismanagement and excessive debt levels. Drawing on theoretical foundations such as agency theory, debt overhang theory, and pecking order theory, the study explores the interplay between budgeting, expenditure control, revenue generation, and debt management mechanisms. Using both primary and secondary data, the research analyzes how these strategies influence operational efficiency, financial sustainability, and service delivery in public enterprises. The findings reveal that sound financial management practices and effective debt control significantly improve performance, while poor governance, political interference, and external economic pressures act as barriers. The study contributes to knowledge by providing a structured framework for understanding the dynamics of financial management in public enterprises and offering practical recommendations for policymakers and stakeholders. These include adopting transparent financial systems, enhancing governance frameworks, and aligning practices with global standards to ensure long-term sustainability and stakeholder confidence.