Abstract: The research mainly aims to highlights the problems of the development budget in Libya. Through both theoretical and field study by preparation of a questionnaire distributed to a sample study of (i) employment in the budgeting in ministry of planning (ii) director of planning in sectors and ministries. Were distributed (52) questionnaire and collective about (38) questionnaire. The data was analyzed using descriptive and analytical statistical methods. The most important findings of the studying that (83%) of the research sample affirm the need for reclassification development budget to provide disclosure shows the allocation by the sectors, ministries and executive agencies. Also confirms (76%) of the study sample that the guidance document prepared by the ministry of planning that help in the process of reviewing and evaluating projects if it would be implemented.

Key words: budget; development plan; public expenditure; ministry of planning; capital expenditures

JEL Classification: O22; O21; H54; H61; G31

Purpose: This study sought mainly to investigate the effect of organisational culture on the adoption of management accounting practices (MAPs) in terms of product cost, budgeting, performance measures and decision support practices among companies operating in Libya, using selection and interaction approaches of the contingency theory.

Methodology: data was collected from 107 companies operating in Libya using a self-administered questionnaire survey. The data analysed using simple regression analysis to test the Hypothesis related to the selection approach and MACRO sobel test adopted for estimating the indirect effect in simple mediation model to test Hypotheses related to interaction approach.

Findings: the findings of the hypothesis related to the selection approach revealed that organisational culture as an overall is statistically significant in predicting the adoption of all individual groups of MAPs and the adoption of MAPs as an overall at p value < .05. Furthermore, the findings indicated that the adoption of MAPs play partial mediation role as individual groups and as an overall on the relationship between organisational culture and organisational performance.

Originality: since, the vast majority of the previous studies mainly concerned on examining the influence of organisational culture on MCS represented by a small number of MCS or specific MAPs, and most of these studiesbased only on the selection approach to examine such relationship.This study provides significant contributions towards the understanding of the organisational culture influence on the adoption of broad range of MAPs, and indicates the intervening effect between these two factors on the organisational performance using two approaches of contingency theory.

Keywords: MAPs: product cost practices; budgeting practices; performance measurement practices; decision support practices; organisational culture; organisational performance.