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ROLE OF BUDGETING IN THE PUBLIC SECTOR OF THE NIGERIA ECONOMY (A CASE STUDY OF NKANU WEST LOCAL GOVERNMENT AREA)

 

A RESEARCH PROJECT CONDUCTED IN PARTIAL FULFILMENT OF THE REQUIREMENT FOR THE AWARD OF A HIGHER NATIONAL DIPLOMA (HND) IN ACCOUNTANCY

ABSTRACT

          This research work was carried out on the Role of Budgeting in the public sector of Nigerian Economy with particular reference to Nkanu west Local Government Area. This study is divided into five chapters, each dealing with particular aspect of the study.

          Chapter one covered general introduction and overview of the subject including the statement of problem which is the fact that budget are made for development projects in the Local Government every year.  But this development projects is the Local Government Projects in the Local Government are not fully executed.  It also include the objective of the study which is to ascertain how far the Local Government adheres to its approved budget estimates a formulation of the hypothesis which include that the activities of the budget review committee is responsible for poor budget formulation and implementation in Knanu West Local Gov. Area.  The chapter also dealt on the limitation of the study which include the fact that the researcher found it very difficult to obtain the approved budget estimate of the Local Government Area for this year.

          Chapter two dealt on the review of related literature on the subject matter.  The subject of chapter three was research methodology which describe the research population and sample, source of data, instrument for data collection which are oral interview and questionnaire, method of data analysis which is through the use of chi-square.

          Chapter four was on the presentation and analysis of data.  Data collection were critically analyzed and discussed relative to the problem stated in chapter one.  The data collected upheld the hypothesis.

          Chapter five was on the summary of the findings, recommendations which include that top management should display its total commitment to the success of each budget from its planning to the implementation.  It was concluded that when budgets are made, they are supposed to be adhered to and ensure that it acts as a guide to management.

TABLE OF CONTENTS

                                 

CHAPTTER ONE

1. Introduction                                                         1
2. Statement of problem                                        5
3. Objective of study                                              6
4. Research hypothesis                                        7
5. Research questions                                          8
6. Significance of the study                                  9
7. Scope and Limitation of the study                             9
8. Operational definition of terms                         10

CHAPTER TWO

1. Review of related literature                               13

2.1    History of budgeting                                          13

1. The concept of budgeting                                 15
2. Types of budgeting                                           20
3. Techniques of budgeting                                  26
4. Budget preparation                                            30
   1. Principal/key Limitating budget factor              31
   2. The manual and Time Table                                      33
   3. The budget committee                                                35
   4. The budget process                                          36
5. Administration of budget                                   38
6. Human factors in budgeting                             40
7. Relevance of review to the study notes                    43
8. Budgeting Techniques use in Nkanu West LGA44

CHAPTER THREE

1. Research Methodology                                     49

3.1    Population and sample                                     49

1. Source of data                                                   50
2. Instrument for data collection                           51
3. Distribution and collection of questionnaire    52
4. Method of data analysis                                    53

                            

CHAPTER FOUR

1. Presentation and analysis of data                             56

4.1    Presentation of data                                          56

1. Data analysis                                                     57
2. Testing of hypothesis                                        67
3. Summary of data analysis                                71

 

CHAPTER FIVE

1. Summary of findings, Recommendation and Conclusions

5.1    Summary OF Findings                                                80

1. Recommendation                                              82
2. Conclusion                                                         85

Bibliography                                                       87

Appendix   A                                                       88

Appendix   B                                                       90

 

CHAPTER ONE

1.1    INTRODUCTION

          The practice of budgeting is as old as modern

civilization and is central to effective management of lean resources.  Its principles are applicable both in the private and public sector.  Business environment is characterized essentially by uncertainties these uncertainties can reduce the business profit opportunities.  If the management can look into the future in order to see area  where problem are likely to occur, suspected uncertainties can be taken care of.  We inquire into the future with predictions which tends to reduce the future uncertainties.  The economic environment is filled with foreseeable and unforeseeable events.  These events in the economic environment are built in the budget.  Budget is futuristic and because of this, those who make the budget try to look into the future when making it.

In economic theory, resources are said to be scarce and have to be employed prudently to achieve maximum benefit.  Budget provides a rational and objective basis for allocation of scarce resources in an economic.  With so many competing needs and lean resources the discipline of budgeting compels people in charge to be discrete in allocation limited resources to meet unlimited expenditure possibilities.  This does not suggest

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