An Appraisal of Budgeting as a Tool for Effective Control in the Public Sector
Chapter One
OBJECTIVE OF THE STUDY
- To assess the effectiveness of budgeting as a control tool in the public sector
- To analyze the budgeting process in the public sector
- To identify challenges and limitations in the budgeting process
- To analyze the budgeting process in the public sector
- To examine the concept of budgeting in the public sector
CHAPTER TWO
REVIEWED OF RELATED LITERATURE
OVERVIEW OF BUDGETING MANAGEMENT
The financial targets frequently employed in assessing the degree of implementation of capital projects with an efficient control entails serious adherence to plan discipline effective monitoring smooth adjustment in the light of new development and the selective continuity of economic policy, by means of quantitative guidance and qualitative goals or instrument.
Budgeting is an estimate of government expenditure and revenue for the ensuring financial year presented to the parliament by the chancellor and embodied in finance bill proposed on the creation of the plan stabilization and pure reserve for fair balancing within the constraints realizing attainable aim and accumulating the reserve.
We could have mild budget surpluses in boom times mild budget deficits in depressed times – a surplus in the sense that the pure reserve fund is cumulated to the same extent and a deficit in the sense that it is corresponding the decumulated. Our backward in growth of the civil service bureaucracy and the public service in general is of course no monopoly of the State, nor is the need to control recurrent expenditure of the foreign borrowing limited to them. These are the need therefore for the national economic council and legislative to control through budget. The level and growth of federal government recurrent expenditure as well as ensure optimum foreign borrowings. So as to have significant availabilities of current budget surpluses for development activities better attainment, informed dialogue and cooperation should be a characteristic of the process towards achieving goals in this connection, a properly constituted and enabled national planning framework should prove invaluable.
SIGNIFICANCE OF BUDGET FRAMEWORK PLANNING
In its simplest form, planning can be defined as thinking before acting. Kenessey is of the view that “mankind and planning are old mates.” In a sense they were born together. The making of the first stone tools already involved measure of “planning.”
Defined as to “scheme,” arranging before hand, planning is broad human attribute” (Kenessey, 1978, p.7).
In a slightly different note Koontz, defined planning as: Deciding in advance what to do, when to do it and who is to do it. Planning bridges the gap from where we are to where we are going to. It makes it possible for things to occur which include not otherwise happen. (Koontz, 1980).
Element of planning: From the foregoing definition we can see that planning is a pre-requisite for any form of development, more particularly in developing countries where development is particularly lacking. Put differently, the thinking process is necessary for every form of development. For as Kenessey correctly puts it:
Certain element of planning and for that matter, centralized planning obviously most has existed in order to maintain the system of irrigation, production distribution, communication and defense at various stages in such cultures as ancient Egypt.
CHAPTER THREE
RESEARCH METHODOLOGY
INTRODUCTION
In this chapter, we described the research procedure for this study. A research methodology is a research process adopted or employed to systematically and scientifically present the results of a study to the research audience viz. a vis, the study beneficiaries.
RESEARCH DESIGN
Research designs are perceived to be an overall strategy adopted by the researcher whereby different components of the study are integrated in a logical manner to effectively address a research problem. In this study, the researcher employed the survey research design. This is due to the nature of the study whereby the opinion and views of people are sampled. According to Singleton & Straits, (2009), Survey research can use quantitative research strategies (e.g., using questionnaires with numerically rated items), qualitative research strategies (e.g., using open-ended questions), or both strategies (i.e., mixed methods). As it is often used to describe and explore human behaviour, surveys are therefore frequently used in social and psychological research.
POPULATION OF THE STUDY
According to Udoyen (2019), a study population is a group of elements or individuals as the case may be, who share similar characteristics. These similar features can include location, gender, age, sex or specific interest. The emphasis on study population is that it constitutes of individuals or elements that are homogeneous in description.
This study was carried to examine An Appraisal of budgeting as a tool for effective control in the public sector. Power Holding Company of Nigeria, Abuja form the population of the study.
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
INTRODUCTION
This chapter presents the analysis of data derived through the questionnaire and key informant interview administered on the respondents in the study area. The analysis and interpretation were derived from the findings of the study. The data analysis depicts the simple frequency and percentage of the respondents as well as interpretation of the information gathered. A total of eighty (80) questionnaires were administered to respondents of which only seventy-seven (77) were returned and validated. This was due to irregular, incomplete and inappropriate responses to some questionnaire. For this study a total of 77 was validated for the analysis.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study was to ascertain An Appraisal of budgeting as a tool for effective control in the public sector. 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 an Appraisal of budgeting as a tool for effective control in the public sector
Summary
This study was on an Appraisal of budgeting as a tool for effective control in the public sector. Three objectives were raised which included: To assess the effectiveness of budgeting as a control tool in the public sector, to analyze the budgeting process in the public sector, to identify challenges and limitations in the budgeting process, to analyze the budgeting process in the public sector and to examine the concept of budgeting in the public sector. A total of 77 responses were received and validated from the enrolled participants where all respondents were drawn from Power Holding Company of Nigeria. Hypothesis was tested using Chi-Square statistical tool (SPSS).
Conclusion
The focus of this study is budgeting as a tool for planning and control. Budgeting has been described as a plan quantified in monetary terms, prepared and approved prior to a defined period of time.
The ministry oversees the performances of the staff in order to enhance smooth performance and subsequently the realization of the objectives. Hence the researcher suggests budgeting and planning to facilitate control of the future expenditure.
The writer undertook the research of the organization to find out whether the Ministry applies budgeting and planning procedures to its operations and in particular the control of its future expenditure. Moreover, if it had done that, how had it being done and to what extent as well as finding out the efficiency and effectiveness of the system on the Ministry. To this end the researcher set two basic assumptions or (hypothesis as a bases for the research study which conclude that;
The Ministry embarked on long term strategic planning and budgeting techniques to minimize its expenditure. There was effective budgeting and planning procedure in the state and in terms of control, the strategic plan of the Ministry proved beyond reasonable doubt that budgeting and planning are suitable for controlling future expenditure.
Based on the finding the researcher identifies that various problems and difficulties usually associated with budgeting and Budgetary control. Among these are:
However, the researcher is not claiming mastering of these problems.
Budgeting develops around the existing organizational structure and departments which may be in appropriate underlying economics realities. The every existence of well documented planning and budgeting may cause lack of flexibility in adapting to change. There is managerial problem in selecting the level of attainment to be included in budgeting and standards.
Variances are frequent due to changes in circumstance, poor forecasting, and general uncertainties. The budgetary system, perhaps because of undue pressure or poor human relations may caused antagonism and decrease motivation.
RECOMMENDATIONS
- The researcher is of the opinion that budgeting and planning of the Ministry should be maintained and pursued until fully realized.
- The Ministry should employ competent and intelligent staff with a lot of experience to facilitate the planning, organizing and implementation of the budgets and plans which will go a long way in controlling the future expenditure of the ministry.
- To support the above recommendations, on the division of labour within the private sector commercialized in the ministry should be encouraged as well as registration with professional bodies.
- To ensure that budgets are realistically established and coordinated satisfactorily, functional heads are to present their budget to the committee for approval
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