ABSTRACT This research was carried out to assess the shortages of funds on effective budget implementation of an organization. The research was carried out in Tanzania food and drug authority Dar es Salaam headquarters The objectives of the study include the following: to establish the relationship between shortages of funds and effective budget implementation of an organization, to find out what types of funds are available for budgeting of an organization and to examine the effects of shortages of funds on effective budget implementation of an organization. The methodology used include, the information generated from the field and secondary sources of data like the journals. Theories in available literature and also empirical literature were critically reviewed and findings revealed that availability of funds has a great impact on effective budget implementation of an organization. The implication is that when good budget are prepared and enough funds are timely released as per approved budget, all activities in and targets will be accomplished in an organization and resulting to the effective budget implementation. :Zecommendations that emerged from the findings include among others; the need for education o the budget implementers so that a concise interpretation of the activities to be carried out is Lchieved and efficient use of resources is effected hence reducing the problem of shortages of i.mds resulting from uneconomic use of resources and purchasing goods and services without onsidering the value for money.