BUDGET AS A MANAGEMENT RESOURCE TO FINANCE IN THE PUBLIC SECTOR

CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Budget is an important tool in the management resources and finance in the public sector. According to Igwe (2005), it is a comprehensive plan, expressed in naira terms by which operating programme is effective for a given period of time Budgeting is therefore a tool, which enhances management of resources (be it financial, human or material) in the public sector.
According to Adams (2006), the public sector refers to all organizations which are not privately owned and operated but, which are established, run and financed by the Government on behalf of the public.
This definition points out clearly that the public sector consist of organization whose control lies in the hand of the public (or the Government) as opposed to private owners and whose objectives profit is not the primary motive of the business or enterprise.
Enterprise is a complex man-made ruining coupling system and a contractual association with body: It is very necessary to the business activities of its process and implements control.
According to modern management guru Robert Simon's theory, management control achieve management objective in the public sector. Through the implementation of series of management control lever, so it should increase the important of budgetary and devote energies to the management of budgetary control to ensure that business objectives and performance management of smooth realizations .
Public sector used internal budget for financial expectations and set financial controls, in addition, the internal budget can be used for purpose such as identifying cost and determining prices (for example, as part of cost recovering arrangements financial performances.
Government budget mainly shows activities which the government proposes to spend revenue. It also contains a list of various sources of revenue from taxes customs duties and sales of crude oil expected to generated during the period. Budgets like all plans are based on part experiences. It is also an attempt to use what happens in the past to plan for the future.
The rational budget is often divided between the three tiers of Government (federal, state and the Local Government).
Each of these tiers of Government prepares, passes, and implements its own budget.
Each fiscal year budget is aimed at achieving some specified objectives, hence it is called different names, example: Budget of hope, budget of consolidation, budget of reconstruction and so on.
The budgetary process in private sector is seen as an integral part of both planning arid control. This running or operating a government without a good foundation.
In recognition of these facts, Lucey (2002) further affirms that Budgeting is about making plans for the future, implementing those plans and monitoring the activities to see wheathere they conform to the plan.
Further, budgeting involves apportioning the approved budget over a sub-periods within the relevant budget period according to a recognized pattern of expenditure (or revenue).
Internal budget are typically phased using monthly intervals phasing the internal budget assist managers with timely identification and analysis of budget variances. In phasing the current year budget, it is important to adjust for known fluctuation factors where material, including where cash and accrual timings differ.


1.2 STATEMENT OF THE PROBLEM
Currently, Nigeria's National Budget runs into Trillions of naira. This however appears not to translate into high standard of living of Nigeria owing to the fact that substantial part of the budget most often ends in private pockets as misappropriate funds. Yet our roads keep developing pot holes in immense magnitude. No drugs and medical equipment in our hospital, our educational institutional keeps going through different types of crises ranging from calls for improved pay package to calls for improvement of infrastructure in our schools to enhance teaching and learning.
Our rural areas suffer from prolong neglect, resulting in rural-urban migration. As unemployment is also on the steady rise, resulting to youth restiveness, armed robbery, kidnapping and other social vices.
How come that we have all these magnitude of problems confronting us, and yet our government officials kept returning to the treasuring millions of Naira as unspent budgeting allocation?
These and other questions are begging for answer thus this study aimed at preferring solutions to the problems
1.3 OBJECTIVE OF THE STUDY
The general objective of the study is to show the important of budgeting in every organization. The specific objective of this work are as follows:
i.              That budgeting brings about growth, development and expansion to every organization embarking on it. Be it private or public,
ii.  That budget is inevitable in every organization be it private or public, even at the family level,
iii. To stress on the need for 100%  implementation  of annual budget so as to bring  about growth   and development and  to  enhance the quality of lives of Nigerians,
iv.        To highlight the necessary of budgeting in the public sector,
v.          To explain the fact that budgeting in the public sector is critical to the efficient management of scarce resources in Government, ministries and parastatals.
vi.        To form against the frequent return of unspent budget provision to the state treasury.
vii.   That budgeting brings or gives, direction or a guide to every organization (public or private), etc.
1.4  RESEARCH QUESTIONS
        i.            In what ways can budgeting enhance efficient management of resources in the public sector?
     ii.            The need for budget discipline in the public sector.
   iii.            That budgeting provisions be spent on statutory approved expenditure so as to avoid misappropriation of funds.
   iv.             That the government inaugurates (put in place) a machinery to monitor the proper implementations of the budget.
      v.            That all relevant government agencies should be held accountable for among non-implementation of the budget in the area of authority.
   vi.            Effective oversight, review and communication: Involvement and comment of senior management is critical to developing an effective internal budget, one approach to involving senior management is through the establishment of a budget committee (often the same as, or a subcommittee of, the executive committee) to oversight the internal budget process.
1.5   FORMULATION OF HYPOTHESES
The following hypotheses guiding this study relate to the objective and significance of the study.
Hoi: The nation's public sector cannot be productive without an efficient and effective budgeting system.
HO2: That the budgeting which spells out the limit of financial statement operation of Government in a give fiscal year is not fully implementation by relevant government agencies/ ministry official charged with that responsibility in the public sector.
Ho3: That budgeting as inevitable as it is, does not impact Positively on the lives of the rural dwellers due to prolong years of neglect and poor level of implementation.
1.6  SIGNIFICANCE OF THE STUDY
The budget is a management tool, which facilitates the task of goal achievement, be it at the family level or in the private or public sector of the economy. This implies that budgeting is highly essential in facilitating the solution to management's problem both in the private and public sectors.
1.7   LIMITATIONS AND DELIMITATION OF STUDY
In the course of carrying out this research, one was faced (confronted) by so many challenges, which posed a threat to its, successful completion, except that God Almighty had been on my side for a successful accomplishment of this numerous task. Those limitations are as follows:-
i.       Due to the inability to reach out to the entire population by way of oral/ face to face interview. Only a sample of the entire population was reached out to.
ii.      Most pieces of information needed to aid this research work were tagged "Top Secret" "Classified" "Confidential" and therefore, not accessible.
iii.    Due to limited resources, much could not be accomplished as earlier expected,
iv. Low co-operation from Council Staff (especially the top management cadre constitutes a   minor setback to the research work.
Budgeting process in the public sector very vast and technical this requires careful studies and indept analysis.
However, in the course of this research work, "budgeting as a tool for efficient management of resources in the public sector", population, sample, enquires, data collection and analysis were all limited to Izzi Local Government Council, Iboko, Ebonyi State.



THIS IS A SAMPLE | WE ARE PROFESSIONALS IN WRITING
Share on Google Plus

Declaimer - MARTINS LIBRARY

NB: Join our Social Media Network on Google Plus | Facebook | Twitter | Linkedin