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ABSTRACT

This research work is being carried out in order to analytically ascertain and explain the roles of budgeting in public sector management with particular reference to ETHIOPE EAST LOCAL GOVERNMENT AREA OF DELTA STATE. The study includes an introduction and the following related sub-parts overview of the subject, statement of the problem. Objectives of related literature.  Also to be included are, research methods, i.e. sources of data, instrument of data collection, method of data analysis, presentation and analysis of data, findings and recommendations. Furthermore, the obvious problems of collecting data through questionnaires, oral interview, library reading and obtaining budget (revenues and expenditure) estimates of the local government area for the relevant year (2001 – 2003) will be addressed squarely. Furthermore, in public sector management emphasis would be laid on:

1. Planning as a guide to policy formulation:
2. Control and Appraisal of Government Expenditure;
3. Efficient and Effective utilization and channeling of Government Revenue Resources;
4. Prudence, transparency and accountability;
5. Giving a sense of direction to Government workers involved in the attainment of targeted goals.

TABLE OF CONTENTS

CHAPTER ONE

1.1     Introduction                                                                   1

1. Statement of the problem                                              5
2. Objective of the study                                          7
3. Hypothesis                                                           8
4. Scope/limitation of the study                               9
5. Significance of the study                                                9

Notes                                                                    11

CHAPTER TWO

1. Literature Review                                                 12

2.1     History of Budgeting                                            12

1. The concept of Budgeting                                    14
2. Types of Budgeting                                              22
3. Techniques of Budgeting                                               30
4. Budget preparation                                                        36
   1. Principle/Key Limiting Budget Factors                38
   2. The Budget Manual and Time Table                    40
   3. The Budget Committee                                        42
   4. The Budget Process                                              43
5. Administration of Budget                                              45
6. Human Factor in Budgeting                                 48
7. Relevance of the Review to the Study                            52

Notes                                                                    54

 

CHAPTER THREE

1. Research Methodology                                         55

3.1     Population and Study Area                                  55

1. Sources of Data                                                    57
2. Instrument for Data Collection                                      58
3. Distribution and Collection of Questionnaire                59
4. Method of Data Analysis                                               63
5. Three Years Financial Summary (2002 – 2003)  65

 

CHAPTER FOUR

1. Presentation and Analysis of Data                       81

Notes                                                                    91

CHAPTER FIVE

1. Summary of Findings, Recommendations and Conclusion

5.1     Summary of Findings                                           92

1. Recommendations                                                         94
2. Conclusion                                                           97

Notes                                                                    99

Questionnaire.                                                               100

 

CHAPTER ONE

 

1. INTRODUCTION

Business environment is characterized essentially by uncertainties; these uncertainties can reduce the business profit opportunities.

The possibilities of these suspected uncertainties being taken care of or controlled are largely dependent on the ability of the management to look into the future in order to see areas where problems are likely to occur.  We enquire into the future with predictions, which tend to reduce future uncertainties.

The economic environment is filled with foreseeable and unforeseeable events.

These events in the economic environment are built into 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 alternative uses.

In order to derive maximum benefits, these resources have to be used effectively, efficiently and prudently.

Scarcity of resources does not mean that they cannot be found in the market, but because they have alternative uses and human wants are unlimited and also they are not free of charge.  The expenditure on them should be maximized.  The need to carefully plan for our resources cannot be over emphasized especially at critical time when the country is experiencing excessive inflation, low level of wages and salaries.

Great disparity between income and expenditure on necessities and finally, great disparity between the rich and the poor.

Therefore, failure to plan is planning to fail.

The uses to which a specific resource can be put are competitively varied, thus entirely ranking of the various objectives or need in order or priority and traded of in line with the available resources.

At the beginning of each financial year usually January as it now apples to Nigeria, are budget for both recurrent and capital expenditure and a budget for income or expected revenue are prepared as a guide and laid down expectations of income and expenditure in the fiscal year.

In the light of wide acceptance of budget by all managers both in the public by all managers economic sectors, various school of thought view it differently in the words of L. F. Hand

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