The purpose of this study is to examine factors that affect program budget utilization in Bahir Dar University. The study aims to examine the statistical significance of factors that affect program budget utilization. In light of this objective the study adopted quantitative method of research approaches to test a series of research hypothesis. Specifically, the study used survey of or questionnaire to obtain data for analysis of program budget utilization taking Bahir Dar University. Stratified sampling design was employed based on nature of target population. Then university management body and experts were selected based on stratified random sampling method. Consequently, the study selected a sample of one hundred twenty eight (128) individuals from the total of 190 observations. Data was then analyzed on quantitative basis using Pearson’s correlation, linear regression analysis and descriptive statistics. The results showed that there is no statistically significance and positive relationship between structure and program budget utilization. Besides, the results showed that there is statistical significance and positive relationship among plan, commitment, communication, competency and program budget utilization.