Information Technology and Budgeting Process in Ministries, Departments, and Agencies in Delta State, Nigeria
Chapter One
Objective of the study
The objectives of the study are;
- To ascertain the effects of ICT on the speed and cost of budgeting process in the MDAs, Delta state
- To ascertain the impact of ICT on government bureaucratic budgeting process in the MDAs, Delta state
- To ascertain whether ICT provide better control over MDAs Budget Processing in Delta state
CHAPTER TWO
REVIEW OF RELATED LITERATURE
Introduction
Budget is a planning tool that identifies the work plan for the fiscal year and matches the financial, material and human resources available with the requirements to complete the work plan (Olajorin, 2012). In public sector, budget is a vehicle that helps to direct public expenditure towards the desired goals in accordance with the promises made by the Government of the day. Furthermore, scarcity of resources and the unlimited nature of societal needs make budget and budgeting an absolute imperative of government so that the society can maintain sustained economic growth overtime. Budget also provides information on government and the policy direction under which the budget was prepared. Although a budget is often discussed as a financial document, the financial portion of a budget means very little without the policy and administrative information that tells stakeholders what Government intends to do with the available financial resources. Hence, the policy formulation aspect of the budget process is key to the success of the budget document.
Conceptual Framework
Traditional Budgeting Process in Public Sector
According to Adams (2009) and ICAN (2009), (traditional) budgeting process in government ministries and extra-ministerial departments is a cycle of events which occur sequentially every year and which result in the approved budget. Before the recent development in the budgeting process in public sector engineered by ICT, normally the budgeting process usually commences around April every year. Ministry of Budget and Economic Planning (MEPB) usually receives policy pronouncements from the presidency (at the federal level). After this, the budget department of the Ministry of Budget & Economic Planning later issued budget guidelines in form of call circular to respective Ministries, Extra-Ministerial Departments and Agencies (MDAs). Each MDA later form a committee of „Advance Proposal‟ which acts as Pre-Treasury Board in order to appraise the various budget proposals received with respect to the fund available. The committee is headed by the Permanent Secretary or Minister of Finance (or Commissioner of Economic Planning and Budget) as the case may be. If the provisional approval is received, the proposed budget is transmitted to the Presidency or Treasury Board (headed by the State Governor). This stage is otherwise called Ministerial or Pre-Treasury Stage. Later on, the Draft Estimates are presented to the Executive Council (Treasury Board) or Council of Ministers. After the Draft Estimates have been discussed, rectified and approved at the Treasury Board, it is forwarded to National or State Assemblies (as the case may be) in form of Appropriation Bill. This stage is referred to as Executive Council stage. This is followed by the presentation of the Appropriation Bill by the President or Governor at the respective Assemblies otherwise called „Budget Session‟. The Bill is later considered by the already established Standing Committee of the Assembly. At the federal level, each arm of the National Assembly and State House of Assembly will approve the proposed budget after every necessary consideration has been made. However, if there is any divergent of opinions on some items of the proposed budget, this is attended to by a Finance Committee whose resolution on the matter is final. Finally, the budget is considered at the joint session (of the two houses of the National Assembly). This stage is called Legislative Stage. The budget is later sent to the President or Governor for his assent which later turns the Appropriation Bill to an Act. The copies are then sent to various MDAs. This is referred to as Presidential or Governor Assent Stage.
Chapter three
Research methodology
Research Design
The research design adopted in this research work is the survey research design which involves the usage of self-designed questionnaire in the collection of data. Under the survey research design, primary data of this study will be collected from Ministries, Department and Agencies in Delta State in order to determine Information Technology and Budgeting Process in Ministries, Department and Agencies in Delta State, Nigeria. The design was chosen because it enables the researcher to collect data without manipulation of any variables of interest in the study. The design also provides opportunity for equal chance of participation in the study for respondents.
Population of Study
The population of study is the census of all items or a subject that possess the characteristics or that have the knowledge of the phenomenon that is being studied (Asiaka, 1991). It also means the aggregate people from which the sample is to be drawn.
Population is sometimes referred to as the universe. The population of this research study will be Seventy-five (75) staffs of Ministries, Department and Agencies in Delta State, Nigeria
CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND DISCUSSION
This chapter is about the analysis and presentation of data collected from the field through questionnaire. The analysis of the data with particular question immediately followed by the presentation of findings.
As mentioned in chapter three, 50 questionnaires were administered and 50 were retrieved and necessary analysis was carried out on them and presented as follows:
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study was to ascertain Information technology and Budgeting Process in Ministries, Department and Agencies in Delta State, Nigeria. In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenges of Information Technology and Budgeting Process in Ministries, Department and Agencies in Delta State, Nigeria
Summary
This study was on Information Technology and Budgeting Process in Ministries, Department and Agencies in Delta State, Nigeria. Three objectives were raised which included: To ascertain the effects of ICT on the speed and cost of budgeting process in the MDAs, Delta state, to ascertain the impact of ICT on government bureaucratic budgeting process in the MDAs, Delta state and to ascertain whether ICT provide better control over MDAs Budget Processing in Delta state. The total population for the study is 75 staffs of Ministries, Department and Agencies in Delta State, Nigeria. The researcher used questionnaires as the instrument for the data collection. Descriptive Survey research design was adopted for this study. The data collected were presented in tables and analyzed using simple percentages and frequencies
Conclusion
The study concludes that the use of ICT to process MDAs budget is indeed a right step government at all levels should take as it hasten and speed up collation of budget, reduce government bureaucratic ways of doing things, reduce the cost associated with traditional or manual way of processing budget as well as providing better control over budget processing.
Recommendation
Thus, the study recommends that the use of ICT to process budget at all levels of governments should be encouraged while capable and competent hands should be brought in, to handle the ICT-based budget processing device
References
- Adams, R. A. (2009). Public Sector Accounting and Finance Made Simple. Revised Edition 2; Lagos: Corporate Publishers Venture.
- Adewoye, J. O. & Akanbi, T. A. (2012). Role of Information and Communication Technology Investment on the Profitability of Small Medium Scale Industries – A Case of Sachet Water Companies in Oyo State, Nigeria. Journal of Emerging Trends in Economics and Management Sciences 3(1): pp 64-71
- Agbolade, O. K. (2011). Information and Communication Technology and Banks Profitability in Nigeria. Australian Journal of Business and Management Research 1(4). pp 102-107.
- Ashrafi, R. and Murtaza, M. (2008). Use and Impact of ICT on SMEs in Oman. Electronic Journal Information System Evaluation, 11(3). pp 125-138.
- Banjoko, S. A. (1996). Production and Operation Management. Pumark Nig Ltd, Ibadan.
- Benefit of Using ICT in Learning for Development (n.d). Effective blended Learning for Development
- . Gatautis, (2008). [8]. Irene, S. R. (2007). Budget Theory and Budget Practice: How Good the Fit? Retrieved from http://www.jstor.org/journals/aspa.html on 20/8/2012.
