This study examines the role of budget execution in enhancing internal control systems and improving organisational performance within the Parliament of Uganda. Anchored in Public Financial Management (PFM) theory and Agency Theory, the research adopts a mixed methods approach, integrating quantitative surveys (n = 188) and qualitative interviews with key informants, including finance officers, auditors, and parliamentary administrative staff. Findings reveal a strong positive correlation between budget execution and organisational performance (r = 0.678, p < 0.01), highlighting that internal control systems are reinforced through inclusive budgeting, variance analysis, expenditure tracking, and timely corrective action. Qualitative insights suggest that, although formal internal control structures exist, political interference, capacity limitations, and inconsistent enforcement impede optimal performance. The study concludes that enhancing budget execution alongside robust internal controls is critical for improving organisational efficiency and fiscal accountability. Policy implications include the strengthening of audit follow-up mechanisms, investment in digital financial tools, and the reduction of political interference to ensure consistent application of financial controls. This study contributes to the literature on PFM in Sub Saharan Africa by providing an integrated framework for aligning budget execution with internal controls in legislative institutions.
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