CHALLENGES AND OPPORTUNITIES IN NIGERIA’S BUDGETARY SYSTEM IN PUBLIC SERVICE
DOWNLOAD THE COMPLETE PROJECT MATERIAL
FIRST PART
INTRODUCTION
1.1 Background of the Research
Budgeting is an essential idea applicable to all organizations (Schadone, 2012). Igbara, Tordee, Nwadike, and Abuba (2016, p.1) defined the budget in very general terms as the distribution of resources (most commonly money) for certain goals. Since the word budget can also mean “Pouch” or “Purse,” a budget is therefore what is in the pouch. According to these experts, a budget is the quantifiable embodiment of a strategy over a specified time period. It may comprise sales volumes and revenues, resources, quantities, costs and expenses, assets, liabilities, and cash flows. It describes in concrete words the strategic plans of government, business entities, organizations, and actions or events. Igbara, Tordee, Nwadike, and Abuba (2016, p. 3) elaborated:
“A budget is also an authorization for public officials to collect taxes, fees, and levies. It is also an authorization for officials to spend public funds in compliance with the authorized budget allocations and financial regulations. The legislative authorisation advances the notion of popular sovereignty. It is also an indispensable tool for connecting total expenditures to total revenues. A budget is a scientific method for quantifying and measuring services in terms of expenditures over a certain time period.
The budgeting notion originated in the public sector. According to Igboeche (2017, p.52), the word “budget” comes from the old English word “Bougett,” which meaning a bag or pouch. The British Chancellor of the Exchequer withdrew the government’s financial plans for the upcoming fiscal year from a leather bag and presented it to Parliament. Citing Omolehinwa (2005), Malgwi and Unegbu (2012, p.1) provided the same historical backdrop of the beginnings of the budget as follows: The word budget is derived from the French word bougette, which means small bag. In Britain, the term referred to the leather bag in which the Chancellor of the Exchequer carried the declaration of government needs and sources to parliament. The budget became the document contained in the bags, which symbolize government plans stated in monetary terms and submitted to the legislature for approval, after multiple rounds of consensus-building. According to Sachdeva and Sogani (1980), cited in Ekhator & Chima (2015, p.2), the budget in modern times refers to a financial plan, statement, or document including estimates of annual revenue and expenditure. Ekhator and Chima (2015, p.2) elaborated further: This indicates that a budget is a description of anticipated revenues and expenditures for the upcoming year, upon which financial proposals are based. However, modern budgets are more than just estimates of revenues and expenditures. It has evolved into a complex system of financial management that involves not only a plan of public revenues and expenditures, but also the entire material finances stated in ministerial statements presented to the legislature and the orderly management of the government’s financial affairs. Bhattacharya (2000) in Ekhator & Chima (2015, p.2) emphasized that a budget is more than estimates of revenues and expenditures; it also includes reports on how the government managed its affairs in the prior year, the condition of the public treasury, the programme of work for the coming years, and how such work should be financed. Ekhator and Chima (2015, p. 2) therefore categorized the following budget characteristics:
i. Specification of all actions to be performed throughout the budget period;
ii. Accurate estimation of the resources necessary to execute the identified activities;
iii. Allocation of funding to competing departments and activities in accordance with pre-established priorities; and
iv. The formulation of appropriate policies to govern and support budget execution.
1.2 Description of the Problem
Throughout the years, public institutions have operated with a budget deficit. This has necessitated a reduction in the institution’s allocation to the user department, making budget execution a difficulty for the public institution. Over time, the amount of government assistance was significantly underestimated. In order to execute some government-initiated projects, a public institution has to use funds generated internally, at the expense of other essential tasks. The policy of releasing recurrent and development funds to public institutions has been an impediment to the efficient administration of institution operations; as a result, this research will investigate the challenges and prospects of the budgetary system in the public sector, using the Federal Ministry of Education as a case study.
1.3 Objective of the Research
This study’s primary objective is to determine the issues and future of the budgetary system in the public sector. Specifically, the study aims to:
1. Analyze the impact of good budgeting on the development of the Nigerian Ministry of Education.
2. determine the difficulties and future of budgeting in the federal education ministry
3. Provide solutions to the budgetary issues in the public sector
1.4 Investigative Question
Effective budgeting has a substantial impact on the development of the Nigerian Ministry of Education?
What are the issues and future of budgeting in the federal education ministry?
What is the solution to the budgetary issues in the public sector?
1.5 Scientific Hypothesis
Effective budgeting has no substantial impact on the development of the Nigerian Ministry of Education.
Effective budgeting has a huge impact on the development of the Nigerian Ministry of Education.
1.6 Importance of the Research
This research would give the government and public sector management with an understanding of the many methods to budgeting and how budgets may be utilized as a planning, control, and performance evaluation tool to ensure the efficient use of resources. In addition, scholars will find this work beneficial, as it will serve as a solid foundation for future budgetary research.
1.7 Scope of the Research
This study will explore the issues of budgeting in Nigeria’s public sector, as well as the prospect, concept, and literatures on budgetary. The federal ministry of education will serve as a case study.
1.8 Limitations of the Research
During the course of study, obtaining funding for general research will be a struggle. In addition, respondents may not be able to or want to submit the questionnaires provided to them.
However, it is anticipated that these limitations will be overcome by maximizing the use of available resources and devoting additional time to research. Therefore, it is strongly believed that despite these constraint, its effect on this research report will be minimal, thus, making the objective and significance of the study achievable.
CHALLENGES AND OPPORTUNITIES IN NIGERIA’S BUDGETARY SYSTEM IN PUBLIC SERVICE
DOWNLOAD THE COMPLETE PROJECT MATERIAL
Need help with a related project topic or New topic? Send Us Your Topic