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A RESEARCH PROJECT ON AN EVALUATION OF THE PERFORMANCE OF BUDGETING AND BUDGETARY CONTROL IN IMO STATE PUBLIC SECTOR A CASE STUDY OF SELECTED MINISTRIES IN IMO STATE.

ABSTRACT

This project is designed to give insight into the use of budget and budgetary control as a tool for evaluation of the performance of government ministries in Imo State public sector.

It must be remembered that budgeting in government ministries encompasses two phases of the financial management cycle. The first consist of the expression in monetary terms of the short term plans and the second consist of execution, accounting and internal control in which all plans are expected to be executed and internally controlled.

The researcher approached this project in the first chapter. Chapter two and three constitutes the preliminary search which includes comprehensive literature and review and research methodology. In chapter four, data was collected with the help of questionnaire, interviews and extraction from budget estimates and were used in making an empirical analysis and simple percentage. Chapter five present the findings, recommendations and conclusion of all the work done, it established that an effective budgetary system has a position co-relating with enhancing system has positive re-relation with enhancing performance of government ministries.

DEDICATION

This research project is dedicated to almighty god, for his love, care and mercies throughout this project. Also to my beloved parents, Mr. and Mrs. Jude Okoro, my lovely sisters for their encouragement both financially and morally including successfully instruction given to me during the production of this work.

TABLE OF CONTENTS

Title page

Certification

Dedication

Acknowledgement

Abstract

Table of contents

List of tables

CHAPTER ONE

1.0 Introduction

1.1 Background of the study

1.2 Statement of the problem

1.3 Objectives of the study

1.4 Research questions

1.5 Significance of the study

1.6 Scope of the study

1.7 Limitation of the study

1.8 Definition of terms

CHAPTER TWO

Review of related Literature

2.0 Introduction

2.1 Definition of the budget

2.2 Purpose of the budget

2.3 Preparation of budget manual.

2.4 Planning and control process.

2.5 Types of budget for planning and control

2.6 Budget and budgeting control

2.7 Budgeting as a tool of control

2.8 The present budget system in Imo State.

2.9 Establishment of budget committee.

2.10 Causes of ineffectiveness of a budgeting system

2.11 Budget structure and documentation, the three should listed sequentially

CHAPTER THREE

3.0 Research methodology

3.1 Research design

3.2 Source of data

3.3 Data collection procedure

3.4 population and Sampling size of the study

3.5 Instrument for data collection

3.6 validity and reliability of measuring instrument

3.7 Data analysis technique

CHAPTER FOUR

4.0 Presentation and analysis of data

4.1 Introduction

4.2 Presentation of data

4.3 Data Analysis

4.4 Interpretation of result

CHAPTER FIVE

5.0 Summary, conclusion and recommendation

5.1 Summary of findings

5.2 Conclusion

5.3 Recommendation

Bibliography

Appendix

Research questionnaires

CHAPTER ONE

1.0 INTRODUCTION

1.1 BACKGROUND OF THE STUDY

The concept of budgeting is as old man in history. We learnt that the early man had to determine whatever he needed in advance before it eventually materialized.

Ojaide (2002:3) this is very obvious in the present days in the lives of individuals, a state or nation. For one to succeed in this world, one has to plan ahead and map out how to uses limited resources to achieve positive results.

As a nation plans ahead in terms of revenue and expenditure within specific period of time so also an individual, local or state government conceptualizes anticipated revenue and disbursement within a period of time.

This is called budget.

Oparaeke C.N defined budget as a “plan of financial operation stating an estimate of proposes means of financing it. The term budget of government which is presented to the legislative body for approval. A government budget may involve billions of naira, but all budgets resemble one another in certain ways”

Budgets help individual or group achieve certain goals in making them use what ever resources available wisely. Every establishment be it public or private finds necessary to prepare budgets and institute budgetary control for the purpose of translating policies coordinating activities as well as instituting financial control in order to achieve the best possible result. This as budgeting is made both in public and private sector, it can therefore be seen that budget and budgetary control if effectively planned and implemented can be used as an effective management techniques for achieving proper financial management.

1.2 STATEMENT OF THE PROBLEM

There is general awareness all over the world of the need to pay greater attention to the development of government budgeting and control. The reason is obvious government in all nations constitutes the largest single entity and in many places the core of the economy.

Its pattern of expenditure or manner of resources allocation determines the extent to which accountability, economic efficiency and effectiveness can be achieved. The budget system which is very complex should aim at attaining greater efficiency in the use of scarce government resources as well as establishing priorities among completing goals.

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