An Evolution of Budgetary and Budgetary Control System in the Public Sector (A Case Study of Kogi)

ABSTRACT Kogi state as development partners to the federal government needs to mobilize enough revenue locally to support the federal government development agenda. Inadequate financial resources can undermine the effective implementation of developmental projects in the state. Budgets are important as they prudently manage scarce financial resources and at the same time serve as a means of expenditure authorization, control and evaluation base. Kogi state in Nigeria prepares budgets but deal with it in lesser extent unlike the profit-making organizations which consider budget and budgetary controls important element in their policies. It is against this background that this study was carried out to find ways by which state especially Kogi state can use budgeting and budgetary controls as management tools to prudently enhance their financial management system for state development. The case study approach was used in the study. Interviews and questionnaires were used to solicit data for the study. The research found out among other things that Kogi state government prepares budgets, but budgetary control apparatus are not in place in the state. The research data evidently prove that in the case of Kogi state, there are repeated budget deficits every year and this has led to misappropriation of state funds. However, poor budget formulation and implementation and low revenue generation base make it difficult for Kogi state government to live up to her responsibility to the masses in the state. Recommendations and suggestions have accordingly been made to improve upon budgeting and budgetary controls in Kogi state and the nation as a whole.

TABLE OF CONTENT

Title Page-----------------------------------------------------------------------------------i

Declaration-------------------------------------------------------------------------------ii

Certification ----------------------------------------------------------------------------iii

Acknowledgement ---------------------------------------------------------------------iv

Abstract------------------------------------------------------------------------------------v

Table of Content-------------------------------------------------------------------------vi

1.0 CHAPTER ONE: INTRODUCTION------------------------------------------1

1.1Background to the Study-------------------------------------------------------------1

1.2Statement of the problem-------------------------------------------------------------4

1.3Research questions ---------------------------------------------------------------7

1.4Objective of the study -------------------------------------------------------------7

1.5Statement of hypotheses-----------------------------------------------------------8

1.6Significance of the study-----------------------------------------------------------8

1.7Scope of the Study------------------------------------------------------------------9

1.8 Limitationof the Study------------------------------------------------------------9

1.9Definition of Terms---------------------------------------------------------------9

2.0 CHAPTER TWO: LITERATURESREVIEW----------------------------11

2.1 Introduction--------------------------------------------------------------------------11

2.2 Conceptual framework -----------------------------------------------------------11

2.2.1 Concept of Management Control-----------------------------------------------11

2.2.2 Meaning of Public Sector Budget----------------------------------------------12

2.2.3 Budgeting -----------------------------------------------------------------------14

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2.2.4 Characteristics of a Budget------------------------------------------------------15

2.2.5 Budget Formulation and Implementation-------------------------------------16

2.2.5 Preparation of Budget Budgetary Controls-----------------------------------17

2.2.6 The Budget Cycle----------------------------------------------------------------18

2.2.7 Budgetary Controls--------------------------------------------------------------18

2.2.8 Conditions for Effective Budgetary Programme ----------------------------24

2.2.9 Function of Budgeting-----------------------------------------------------------25

2.2.10 Budgetary Control Techniques------------------------------------------------25

2.2.11 Purpose of Budgeting-----------------------------------------------------------27

2.3 Review of Relevant Literature---------------------------------------------------28

2.4 Theoretical Framework-----------------------------------------------------------32

CHAPTER THREE: RESEARCH METHODOLOGY---------------------34

3.1 Introduction--------------------------------------------------------------------------34

3.2 Research Design---------------------------------------------------------------------34

3.3 Population of the Study------------------------------------------------------------34

3.4 Sampling Size and Techniques----------------------------------------------------35

3.4.1 Validity and reliability of instrument------------------------------------------35

3.5 Sources of Data Collection ------------------------------------------------------36

3.6 Method of Data Collection---------------------------------------------------------36

3.7 Method of Analysis-----------------------------------------------------------------36

CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS-----------37

4.1 Introduction--------------------------------------------------------------------------37

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4.2 Analysis of Data---------------------------------------------------------------------37

4.3 Analysis of Biographical Information of Respondents------------------------38

4.4 Budget Planning, Preparation and Implementation----------------------------39

4.5 Sources of Revenue-----------------------------------------------------------------42

4.6 Budgetary Controls and Performance Evaluation------------------------------42

4.7 Analysis of Revenue and Expenditure-------------------------------------------44

CHAPTER FIVE: SUMMARY, CONCLUSIONS AND RECOMMENDATION

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5.1 Summary of Findings---------------------------------------------------------------47

5.2 Conclusions--------------------------------------------------------------------------48

5.3 Recommendations------------------------------------------------------------------49

References--------------------------------------------------------------------------------51