TABLE OF CONTENTS

Title page
Certification
Dedication
Acknowledgment
Table of content
Abstract

CHAPTER ONE
1.1 Background of the study
1.2 Statement of the problem
1.3 Research question
1.4 Objectives of the study
1.5 Significant of the study
1.6 Scope of the study
1.7 Limitation of the study
1.8 Operational definition of the terms

CHAPTER TWO
2.1 Introduction
2.2 Conceptual frame work
2.3 Concept of public sector in nigeria
2.4 Budgets in public sector
2.5 Budgetary control
2.6 Objectives of budgeting control in public sector
2.7 Budgetary control in government and private industry compared
2.8 The legal frame for legislative executive relations in budgetary control
process
2.9 Government budget procedure in Nigeria
2.10 Legislative organization of budgeting control process in Nigeria
2.11 Accountability and transparency in public sector

CHAPTER THREE: RESEARCH METHODOLOGY

3.1 Introduction
3.2 Research design
3.3 Sources of data collection
3.4 Population of study
3.5 Sampling procedure / size
3.6 Method of data analysis

CHAPTER FOUR: DATA PRESENTATION, ANALYSIS AND

INTERPRETATION
4.1 Introduction
4.2 Presentation and analysis of data

CHAPTER FIVE:
5.1 Introduction
5.2 Summary of the study
5.3 Conclusion
5.4 Recommendation
Reference
Appendix

CHAPTER ONE

1.2 BACKGROUND OF THE STUDY

The word budget originated from a French word ‘bougette’

meaning little bah. In Britain’ the word was used to describe the leather

bag in which then chancellor of the exchange used to carry to parliament

the statement of government needs and sources as describe by several

thoughts of consensus, budget became the document contained in the

bag which represent plans of government expenses in money and

submitted to legislative for approval. (Abdullahi and Angus, 2012).

According to Olurankinje (2012), budget making and budget

implementation involve the process of identification of public needs and

the determination of the quality of goods and services to satisfy these

needs through the political process by economic analysis with the

overall development plan objective. Government prepares budget inform

of public policy to serve as a driving force through which mission could

be achieved. Budget accomplishment are so wide and kept on abating as

year pass by

The government plays leading role in shaping and development of

any nation and given their explicit importance, it is necessary to provide

a suitable frame work to enable the achievement of the noble-role. This

is accomplished through the apparatus public administration, a field

which refers to the manner in which federal state and local institution

with their procedural, legal, regulatory, financial human resources and

asset aspect are organized, institutionalized and managed with respect to

regulatory revenue generation, spending and procurement function and

the provision of such services as defense, social service and economic

infrastructures (Keneth, 2012).

Public sector according to Olurankinse (2012) simply refers to the

part of the economy that is control by the government for the purpose of

basic government services. These basic services that the government

needs to provide is so enormous due to increase in the number of people

 they serve; as economist will put it “human want are unlimited” this

therefore calls for the use of an efficient management tools that will

harness the limited resources for optional use. One of the, machineries of

government that can be use for this purpose is budget

The primary objective of budget is to measure the portability of an

organization. Budget may be divided into two main

Capital budget and operating budget

Capital budget are directed towards proposed expenditure for new

project and option require special financing

The operating budgets are directed towards achieving short terms

operations goals of the organization for instance, production of profit

goals in a business firm. Operating budget may be subdivided into

various department or functional budgets. The writers therefore aim at

appraising budgeting practices and budgetary control in public sector,

with particular references to Kogi state polytechnic, Lokoja

1.2 STATEMENT OF PROBLEM

 The public as the ultimate owner of resources, need to know how the

resources are being utilized on their behalf. One important legal

instrument used in discharging this activity is the budget. The budget

being an indispensable tool of economic policy and management

accountability need to be effectively controlled. This is because if

budgeting processes are not well controlled, it can result in inefficient

operations and may well-mean that anticipated services have not been

delivered.

Despite the presence of budget office and budget monitoring term in the

public sector, the preparation and execution of budget the public sector

is ineffective. This has been a problem from one administration to

another administration that is why the researchers undertake to find out

the impact of the budgeting on performance in the public sector and

ascertain the effectiveness of budgetary control in the public sector

1.3 RESEARCH QUESTION

The following research question guided the study

1. To what extent does budgetary affect performance in the public sector?

 2. How effective is budgetary control in the public sector?

3. In the budgetary control system in Nigeria public sector satisfactory?

4. Are there adequate mechanisms for performance measurement?

5. Are there adequate provisions for expenditure and output control?

1.4 OBJECTIVES OF THE STUDY

The objectives of this study includes;

1. To ascertain if there are adequate provisions for expenditure and output

control

2. To ascertain the adequacy and effectiveness of budgetary control system

in the Nigeria public sector

3. To ascertain if there are adequate mechanism for performance

management

4. To help improve the knowledge of the researcher on budget and

budgetary control in the public sector

1.5 Significance of the study

1. It will help the public sector to understand how the budgetary control is

established and also how it affects organizational performance

 2. It will help the public sector to understand the budgeting may lead to

decrease in cost and increase in revenue which in turn leads to profit

maximization

3. It will help to motivate manager and employees at all level and serves as

standard for measuring performance. A good budgetary performance

shows a reflection in the eyes of every one

4. The addition of knowledge is basically the arm of every study, and this

study which seeks to ascertain the effectiveness of budget and budgetary

control is not as exemption. Readers of this study will stand a better

chance of making contribution to the issue of budget and budgetary

control in the public sector

5. It is equally beneficial for future undergraduate, who may use it for

research work in the future

6. Also another significance of this study is that the work is a requirement

for the award of Nigeria certificate of education (N.C.E) on the

researcher

1.6 SCOPE OF THE STUDY

 This study tilted evaluation of budget and budgetary control is only

limited to Kogi state polytechnic Lokoja

It also reviews the budgetary process with emphasis on practices in other

part of government establishment all over the world

1.7 LIMITATION OF THE STUDY

The following difficulties posed some limiting factors to the level of

accuracy and reliability desired during the course of the research work

1. Low response rate from questionnaire administered due to bureaucratic

nature of public sector, some questionnaire were received by the

respondents and some could not be recovered

2. Unwillingness of the respondent to give information as requested

1.8 OPERATIONAL DEFINITION OF TERMS

Appropriation: Authorization granted by a legislative body to make

expenditure and incur obligation for specific purpose

Account General: this is the head of the treasury that accounting office

of receipts and payment of the government of the federation he

supervises the ministries, agencies and other arms of the federal

government

Annual federal budget: this is the yearly quantification in monetary term

of the overall objectives which the federal government has set aside for

itself controlling the numerous activities resulting from its operation

Fiscal control: an integrals part of financial management which ensures

that financial resources obtained economically and used effectively and

efficiently in the achievement of desires of goals.

Fiscal period: twelve months period of time to which annual budget is

applied and the basis of which a government unit determines its financial

performance

Money bill: it is an appropriation bill including any bills for payment

issue or withdrawn from the consolidated revenue fund of the federation

Financial regulation: these are authoritative documents issued from time

to time detailing the system to be adopted concerning the receipts and

disbursement of public funds. The procedures also ensures good

accountability and assurance against fraud and other irregularities.

Grant: a contribution by one government unit to another

Bill: these are written plnas for the proposal law presented to the

parliament discussion. They are of two types money bill and non money

bill

Assent: giving an approval to a proposal that is passed into law

Virement: an authority process which allows fund under one subhead to

be used under another sub head of the category to be inadequate

Public account committee: the legislative organs whose function is to

consider the auditor general report submitted to national or state

assembly
 CHAPTER TWO

LITERATURE REVIEW

2.1. INTRODUCTION

In view of the diverse nature of this study, this chapter dwells more

on the review of all related literature and pave way for the formulation

of the conceptual frame work and theoretical foundation.

2.2. Conceptual Frame Work

Oshasami (1992) argued that, since resources available are not

always sufficient to serve the needs and opportunities, which the

government would like to serve or seize, budgeting remain the tactical

instrument for both decision. Making as well as allocation of resources.

Awoyemi (1989) stated broadly the purpose and associated features of

public sector. Budget may be considered in terms of a full of

accountability, management and economic policy, planning and

programming. Budgeting is a process designed primarily to make

government and public cooperation and activities more effective and

more efficicient (Oshasami 1992).

 Government objectives are to increase investment and

development which are the keynotes of government policy and

acceleration of economic growth and development. Below are the

reasons why most government projects are abandoned without

completion.

1. Time available for the preparation of the national budget is usually short,

that is no quick respond by ministries to the circular issued by the

ministry of finance.

2. The execution of the budget is not related to the development plans of

the government, most of the projects are ad-hoc. For example, Nigeria

has been developing without recourse to development plans.

3. Bureaucratic procedure, experienced thorough excessive concentration

of power at the top: project management are not given freedom to

manage their project etc.

2.3. Concept of Public Sector in Nigeria

Being an operator of mixed economy, operating private sector

economy along its publics sector. According to advanced learning

dictionary “public sector is the part of economy of a country that it

 owned and controlled by the government”. Sally et al (2001:943). In

Nigeria the public sector is categorized into the following

1. Government: This comprises the three tiers of government which

include; Federal, State and Local Government. The status, power, duties,

responsibilities and relationship existing among them are well spelt out

in 1999 constitution of the federal republic of Nigeria. It also embraces

civil service and the political offices together with officers.

2. Public utilities: These are agencies which specialized in the provision of

basic amenities such as water, electricity, telephone, Edo state water

board etc.

3. Financial institution: These embraces institution established to render

financial services to the citizenry. Such body equally be involved in the

regulation of private oriented financial institution e.g Central Bank of

Nigeria (CBN)

4. Commercial and industrial companies: These are entities set up by the

government with a view to participate fully in economic activities. They

are with one objective which is profit maximization and cost

minimization with recent capitalization blowing across the public

 corporation entities. Some have become commercialized entities e.g

National Electric Power Authority, Nigeria Port Authority etc.

5. Regulatory bodies: These are entrench accountability, probity, and

ensure discipline in the economy. Their primary responsibility is to

ensure that goods and service being produced or ordered out by

institution are qualitative and capable of standing the test of time. By

their nature. A good example is the National Agency for Food and Drugs

Administration Control (NAFDAC), Nigeria Insurance Commission

(NICON) etc. in Nigeria, all these (that is the above mentioned

institutions) form the public sector.

2.4. Budget in Public Sector

Osiyemi (2005) defined budge as “monetized expression of targets

to be accomplished in agiven year by an individual organization or

nation. It is deliberate attempt to achieve superior targets are influence

by the experiences of the past and expectations of the future.

Oriakhi (2002) defined budget as a financial plan which contain a

detailed estimate expenditure, revenues and surplus or deficit the present

and succeeding fiscal year. Essentially the budget is the instrument

 employed in the actualization of development plan and thus, it could be

regarded as a document.

Prerichard (1985), opined that government budget in the early

stages of its evolution was concerned with serving the purpose of

legislative accountability. This approach emanated from the long

struggle between the legislative and the monarchs that ended with the

legislative control of taxation, allocation of expenditure and borrowing

by government. In general, budgets have certain vital qualities which are

given below:

1. Regularity: This means there is time frame requiring the annual

submission of budgets. Where there is delay in the presentation of

budget proposals to the national assembly this may affect the objectives.

2. Unity: This means there is comprehensive in the transaction of

government.

3. Accuracy: This implying that revenue and expenditure are match as a

bound with the legislature and basis of their approval.

4. Clarity: Budget should be cleared enough so that the community and it

representative could understand and rate on it contents.

 5. Publicity: Since budget is a public documents it content must be known

by the community. When these qualities are well observed, the purpose

of a government budget may be considered as a tool of fiscal

accountability management and economic policy.

2.5. Budgetary Control

Control is defined by GMA as the establishment of budget relating

to the responsibilities of executive to meet the objectives of an

organization and continuous comparison of actual with budget estimate

so that if remedial action is necessary. It may be taken at the early

stage”. It is a review of planned estimate against actual result to achieve

performance evaluation.

Budgetary control is a process of establishing measures, checks,

techniques to compare continuously the budgeted (anticipated)

performance with the actual performance to ensure the desired

objectives of the relevant government department is met (Emeni and

Ibadan, 2005). Assisting organization in accomplishing its basic

managerial function of planning, coordinating and control conventional

media interpretation and ordinary discourse, perceived it to those active

 that are taken to ensure that anticipated, estimated or predetermined

standards and objectives are realized. To ensure that actual result are

positively in accordance with the overall financial and policy objectives

of the establishment, the following steps must be followed:

 Identification of responsibility centers in the organization to execute

specific activities forming part of the budget.

 Adopt of mutually agreed targets of achievement to serve as milestone

 A system for periodic monitoring of performance.

 Careful comparison of the actual performance and outcomes with

corresponding parts of plan.

 Assessment of derivation and variance in actual performance and

activities in realtion to the plan and identification of corrective action

aimed at ensuring that the planned activities and action s are adhered to

as far as possible.

It is essential that, there should be effectively and efficient

organization of budgetary control is not only a tool for exercising

planning, but also a tool of management accountability at all levels.

 Budgetary control is thus, a technique encompassing the entire process

of budgeting starting from preparation of budget, covering monitoring

and review and culminating in corrective action.

From the foregoing, it suffices to say that budgetary control is a

systematic efforts by the managemtn to compare performance to planned

objectives. The big question is do government institution compare

performance with actual: are they answerable fiscal, managerial and

other responsibilities that have been conferred on them? This is because

the heart and soul of democratic practice is accountability reports in

order to access the performance of those entrusted with public sector

resources.

In fact, the obligations of person of entities including public

enterprises and expirations, entrusted with public resources are to

answerable for the fiscal, managerial and other responsibilities have

been conferred on them.

2.6. Objectives of Budgetary Control in Public Sector

 The objectives of budgetary control in the public sector are briefly

summarized as follows:

1. Ensure that all the economic activities of the government parastatals are

well implemented.

2. Identify deviations from the original plan if any and bring it unto line

with the standard

3. Measures effectiveness of management and fanatical soundness.

4. Measures effectiveness of the delivery of inputs that is ensure that

service are adequately delivered.

5. To ensure that spending in public sector proceed in a manner consistent

with appropriation laws.

6. Provide a yardstick against which result can be compared with budgeted.

This implies assessment of the impact of the service being performed by

either the government or it agent.

7. Ensuring that non-implementation of some projects does not occur.

2.7. Budgetary Control in Government and Private Industry Compared

 Budgetary control is the use of the budgets to control the activities of

the organization. It is a tool of management. That is, it helps

management to deploy resources and coordinate the activities of units in

ways that are consistent with the objectives of the organization. But as

with any other management tool, the actual result i.e whether

management is effective or not, will depend on the seriousness with

which the tool is used.

Obviously, there are similarities and differences in the ways in which

government and private industry use budgetary control in management.

The table below illustrates these are follows:

Comparison between private sector and public sector budgetary control

BUDGETARY GOVERNMENT PRIVATE INDUSTRY

STAGE

Budget formulation Carried out mainly the Master budget

budget office, but with produced by budget

inputs from and in close committee but with

consultation with other inputs functional

 government department, the budget from the

budget must be approved by budget centers, the

the law makers, the budget must be

legislature approved by the

policy makers, the

board of directors.

Implementation Carried out by the various Carried out by each budget

ministries, department and centre

agencies

Audit and Carried out by the budget Carried out by the budget

evaluation office in collaboration with officer who must produce

other relevant department of monthly report.

government.

Source: Akpakpan (2023)

The comparison show that the basic features of the budgetary

process in government are the same, as we see in private industry that is

the government uses budgetary control in management as private

 industry does. Base on this we should expect government to achieve

their macroeconomic objectives with budgetary control, as private sector

organization general do or at least do much better than they have done in

economic management.

It is unfortunate, rather than improve performance with budgetary

control, the result especially in our case seen to be getting worse over

time for instance the objective of 1999 budget were:

i. To improve internal security.

ii. To boost capacity building and utilization

iii. To reduce the level of unemployment

iv. To improve the purchasing power of the citizens

v. To sustain single digit inflation rate among other

With all these outstanding objectives, the result were generally

poor revenue base was expanded in any significant way at the economic

continued to depend to revenue form oil.

Capability building remained weak and capacity utilization

actually decline; unemployment was not reduced, instead it rose, they

 increase in public sector but these did not bring about expected general

improvement in purchasing power inflation rate rose double digits.

CONTROLS GOVERNMENT BUDGETARY SYSTEM

The public budgetary process begins with budget formulation and

proceeds through approval, implementation to audit and evaluation. It

can also be divided into four phase, V12 budget drafting, legislative is

clearly spelt out in each phase.

a. Budget Drafting Phase

Section 81 (1) of the constitution of the Federal Republic of

Nigeria 1999 empowered the executive to regulate revenue and

expenditure of the nation, that is responsibility of policy formulation and

presentation to the legislature, according to this section.

“The president shall cause to be prepared and kid before each

house of the National Assembly at anytime in each financial year

estimates of revenue and expenditure of the federation for the next

following financial year” some constitution assign the function to the

congress. By implication this system truly represent the wishes of the

 people. As each representative will have to consult its constituency in

the process of determine preference thus, the national budget can truly

represent a consolidation of the decision of the people. However, since

1921, this power has been ceved to the president. This was a result of the

increasing technical nature of modern budget.

Nevertheless, the drafting budget of the president remains as

advisory draft, meaning that the congress has the ultimate power to draft

the budget Bowles (1998).

Budget formulation involves three main sets of activities, Akpakpa

(2002) they include:

1. Suggesting the objectives and policies that should be used the policy

measures that should be adopted which is normally base on a review of

social and economic conditions.

2. Making estimates of expenditure and review and

3. Suggesting the allocation of fund to sectors, programmes and projects.

The activities are managed by the federal ministry of finance (FMF).

Through the budget office of the federation (BOF).

The process begins with review of the past budget and macro-economic

development and condition. Budgetary drafting follow:

A series of inter-ministerial meeting (include the presidency), to

discuss the macro-conditioned and reach a broad agreement or what the

objective of the government should be in the next year and a call circular

by the budget office to all ministries and agencies of government

requesting budget proposals for the ensuring year, which must be in line

with the agreed general objective the proposals are submitted by the

ministries and agencies and analyzed and summarized meetings the

meetings commonly referred to as budget discussion during which

individuals, ministries and agencies are expected to testify their proposal

and modifications are made.

Therefore the budget office clean up the submission based on the

outcome of the discussion and brief the minister of finance meets other

minister to discuss the proposals and priorities projects. After which

he/she brief the president on the outline and recommendation

 Therefore, the ministry of finance finalizes works on the budget

proposals and produces a draft budget; the draft is submitted to the

federal executive’s council for consideration and adoption. After

adopted the draft budget which may now be referred to as “the executive

budget” is presented together with an appropriation bill to the parliament

by the president for consideration and approval

The major issue arising from the drafting of the budget by the

executive is timing of the presentation of the parliament survey of

several constitution identified two traditions. First is a tradition in which

the budget is presented to the parliament before the commencement of

financial year while the other requires the draft budget to be submitted

after the commencement of the financial year, a good example of

constitution that practical the first tradition a republic of congo. Example

of constitution that practiced the second tradition is south Africa

Oriakhhi (2002). “The major reason behind this difference is

because of the fact the scope and function of government are not

“usually the same” the reasons for budget approvals before the financial
 year are usually based on that economic condition existing previously

which are likely to change in the year. On the other hand, the main

reason behind the practice of the second tradition is the beliefs, that

economic condition are not static

b. The legislative phase.

The legislative phase involves the consideration of the budget by

members of the parliament. The function is provided by the constitution

section 81 because it is the responsibility of the national assembly, the

authorized expenditure from the consolidated revenue food of the

federation, the agency has a duty to undertake a review a legislative of

the proposal presented by the president. The legislative may approve,

modify and reject the proposals by the executive branch. It can modify

the objectives to be pursued changed some policies, modify some

programmes and projects and introduce new ones, it can changed the

basic of the estimate and the allocation of fund to programs and project
 “thus, the national assembly plays a crucial role in the budgetary

process.

Identified indifferent constitution the tradition includes;

i. Budget-making legislature

ii. Budget –influencing legislature

iii. Legislature that has no effect on the draft budget

Under the budget- the legislative have unlimited constitutional powers to

amend the draft budget of the executives e.g U.S.A 1787 constitution

Budget-influence legislature: here the parliament can amend the draft a

generally influence the projected revenue and expenditure estimates

without affecting the general outcome of the government fiscal operation

e.g Germany constitution

Legislature that has no effect on the draft budget, the parliament cannot

effect the budget presented to it e.g canana, Australia e.t.c. the

implication of this is that any attempt by members of the parliament to

amend the draft budget would amount to vote of no confidence”

compelling the registration of the entire government.

 Eyiyere (1983) “the executives has full control of the legislature, nearly

all bills initiated by the executives are passed by the legislature

Legislature review and approved of the executive budget in Nigeria,

begins with the first reading of the bill at both the senate and house of

representative. Thereafter there is the second reading during period

ministries and agencies may be invited to justify their estimates and

proposals.

The committee of each house sends their recommendation to the

committee of the whole house for consederation and approval. After

approval by the committee of the whole house at both the senate and

house of both the senate and house of representative. The finance and

appropriation committee of the two houses meet to reconcile any

difference in the version approved by each of the two houses. The

reconcile version is sent to each house or the third reading after which

the appropriation bill is passed and returned to the president to sign into

law, the appropriation are ready for implementation

c. The implementation phase

 Budget implementation or execution sound simple and straight forward

but is very difficult stage in the budget process. Osiyemi (2005),

acknowledge this fact while presenting a paper at a 4-day national work

shop organized by the society of charted accountants in the public sector

in 2005 that a critical aspect of any budgeting process is the issue of

implementation. The difficulty lies in the nature and scale of activities

that must be carried out. The set of activities involve in budget

implementation can be summarized as followed:

i. Collection of approved revenue (payable into the federal account)

ii. Sharing of overall collected revenues among the three tiers of

government federal estate and local government

iii. Replace of funds from the retained revenue of the federal government

(payable into the consolidate revenue fund) to spending agencies

iv. Commitment of funds released for approved project

v. Execution of approved project

vi. Disbursement of funds for approved project

All these activates are difficult tasks that must be carried out if the

objectives of the government are to be achieved

One important thing that should be noted about this phase of the

budgetary control process is, the fact that the revenue of the execution of

the planned project will be earned over the year that is from 1st of

January to the 31st of December. This means that unless there is some

practice commonly referred to as “way and means advances the

government may not be able to executive many of its projects in the

early year. This is the one of reason why government borrowed from the

central banks and it makes sense as long as the money is used

judiciously

Another feature that should be noted is this procedure for the release of

fund for project business. The money the government control belongs to

the entire nations. It’s use is guided by law and often compliance the

cause delay project execution

Although the legislature is not involved in budget implementation but

the constitution over budgets implementation. This is to ensure

accountability and transparency and orderly implementation which most

people often focus on in the actual execution of projects for instance,

construction works, procurements and the delivery of service. These

 project must be executed as approved but the question here is that is it

all policies, contained in the budget the executive implement? The

answer is no, this is because of the fact there is no aspect of the

appropriation acts that compels the execution to implement all policies

contained in budget

d. The auditing and evaluation

The auditing and evaluation is the final phase of the budgetary process.

The idea is to examine the execution of all approved projects to see how

well the various government department carried out their activities for

instance, whether agencies were efficient.

Akpakpan (2006), identified two types of audit mainly used in public

sector during the presentation of a paper of the worship of financial

management and budgetary control in the public sector. Jointly

organized by the office of accountant general of the federation and

association of national accountants of Nigeria (ANAN), the tow audits

are: financial audit

Financial audit: this is about evaluation compliance with financial

regulation and honesty in the use of public funds. It involves scrutinizing

transaction, reviewing financial document see if jobs said to have done

and paid for were actually done and if payments said to have been made

were actually made

Performance audit: this deals with the efficiency and effectiveness of

project execution. Both types of audit help to determine how well the

government as used public resources and how well the activities of the

government have serve the public

It should be noted that he relevance of an audit report is function of the

tuning and extent of independence of the reports. Therefore, the timing

of the report are very crucial for the credibility of accountability,

transparency and orderly implementation of the budget

As a result, in some systems there are provision made as regards to the

turning of the audit report. For example in Ghana, the auditor- general

audit report must be submitted within ninety days after the financial

years
 Another issue is the independence of the auditor-general. To boost the

independence of the auditor general some constitutional power are

granted. The efficiency of public sector autior should continuously be re-

emphasized in order to promote the culture of transparency and

accountability in public government” . osiyem, (2005). This is because

of audit reports which should be published, help to guide future

programmes and procedures for the national budget process to become

the definitive mechanism for public expenditure, capacity must be

developed to capture information, analyzed if effectively, introduce

timely action in a variety of institution and monitor result of allocation

and expenditure

2.8 The legal frame for legislative executive relation in budgeting

control process

Regulation simply put is the control of activities of way of rules for a

way of the life to be progressive, dynamic and purposeful, it must be

regulated. To this end public sector budgetary system is not exception as

it has been subjected to serious of rules and regulations

 The constitution also established the consolidated revenue fund (CRF)

as the federal and state government levels and by implication

The parliamentary is empowered either to reject or approved the budget.

The implication is an unlimited power of amendment thus, the

constitution stipulated where the president, governors without assent,

appropriation bill is passed into a law with two-third of the parliament

after 30 days of approval in addition, the constitution also provided that

supplementary estimate must be approved by the parliament, the essence

of the provision is to ensure fiscal discipline in the use of public funds

Section 82 and 122 empowered the president/governor for a maximum

period of six months to one 1 hour expenditure where the appropriation

bill is not approved before the commencement of the new financial year.

The amount is to be spent will not exceed the amount approved in the

preceding budgets and covers expenses for services of government. The

conflict here is that the constitution however, did not clarify whether the

expenditure is restricted to current expenditure or cover both recurrent

and capital expenditure

 Section 86 (1 and 2 ) and 192930, empowered the president and the

governors to appoint ministered commissioners for the various

implementation ministers department and agencies. The power of

implementation rest with the president and governor, the parliament can

verify project under execution by the various ministers, department and

agencies (section 88).

To perform this function the parliament is granted powers by the

constitution to mute any ministers or commissioners or any other

government officials. Efficient to appear before it to explain the conduct

of this ministry is under discussion. This constitution also made it

possible for the parliament to constitution oral committee to carry out

the over sight function, having the right to investigate the disbursement

of money appropriate or appropriated by national assembly / state house

of assembly

2.9 Government Budget Procedure in Nigeria

The financial year in Nigeria is the same as the calendar year. Figure 1,

show the government budgetary cycles as both the federal and the state
government. The budgetary cycles begins with the articulation of the

budget policies and objective by the president/ governors and the

executive councils. The budget department realizes these policies and

objectives by coordinating, the budget department, the budget

department sends out all circulars to ministers aimed at obtaining each

ministry estimates of revenue and expenditure. The ministries prepare

individual budget under sub-heads of revenue, recurrent and capital

expenditure based on guidelines contain in the call circulars. Second, the

budget department aggregates estimates from the minstires in a form of

consolidate estimates of government revenue and expenditure

The federal government is reviewed by the federal executive council

(FEC) also, the president’s budget at the national council to ultimate the

state government on the direction of the economy, the government

budget are reviewed at the state executive/state. Executive councils, the

budget is presented to the nations and state house of assembly,

respectively. The presented to the budget to the national assembly is

done at a joint siting of the two houses. The legislature debate of the
 budget is approved. This is followed with the signing of the approved

budget into a law known as “appropriate bill”

The next stage involve budget to the minister/commissioner of finance

circulating the approval budget to various ministries for implementation.

It is important to not that the parliament makes no any input into the

budget during the preparation of the budget apart from the parliamentary

of the budget which is submitted by the desk of the douse during

implementation, the individual ministers makes regular report of the

ministry of finance which is tasked with scrutinizing and consolidating

of the report. At the end of the financial year the consolidated report is

submitted to the audit general who submits the audit to the parliament

The parliament is tasted with the scrutinizing and tasking appropriate

action on the reports. The final report of the parliament on the audit

report is referred to the president / governors for implementation

2.10 legislative organization for budgeting control process in Nigeria

Each house, that is, national and state house of assembly has an

appropriation and public account committee. These committees are the

nense centre for legislative activities of the federal and state budgets.

Thus they are the key players in the costing of the financial requirements

of federal and state mandate tax issues, and other matters relating to

inter-governmental fiscal relations. On the other hand, the public

account committees are the major players in the evaluation of approved

financial requirement of federal and state mandates and other matter

relating to inter-governmental fiscal relation

The legislative activities in the parliament begins after the presentation

of the budget by the president/governor. The senate president speakers

laid the budget at the floor of the house for the first reading during

which there are debates on the general frame work and objectives of the

budget. During the reading and debates, the party leadership coordinates

the debates of their member which are largely influenced by the

costively inserts. The budget document is therefore referred to the

appropriation committee of the house after the first reading, generally,

the house then organized on committes basic handling each ministry and

other important areas of concerns

 The appropriation committee implement their ministry of scrutinizing

the budget through the senatorial committees which to liaises with the

respective ministries to ascertain the appropriateness of their estimates.

The committee receives copies of the draft budget of their respective

area of supervision from the appropriate committee. The committee

assignment are usually, prepared in a form of proceedings after

consultation with the relevant ministries, shareholder, constituencies and

public hearing, the committee assignment in most case, take two or three

months to complete the work. The number of sitting varies from four-ten

sitting depending on the size of each ministry and parastatal under the

committee’s supervisors. Each committee prepare a final set of

suggestion indicating the amendment made in the draft and submits to

the appropriate committee

2.11 Accountability and transparency in public sector

Accountability is not a simple nations and often than not it is well

understood and it effective application, to the complexities of

government study be qurto demanding. It touches on several basic value

people hold. Key aspect of accountability in Nigeria rest on traditional

principles of presidential system of government yet applies within a

public quite different from that which existed when the principles were

established. A Canadian publication defined accountability as “a

relationship based on obligation to demonstrate, review and take

responsibility of performance, both the result achieve in light of agreed

expectation and means used

It emphasizes on the importance of accountability for result as well as

for means used to achieve them, it also underlines the fact that effective

accountability is not just simply appropriate actions and the need to

directly address likely possible consequence for individuals

Today, citizens are demanding clearer and greater accountability for the

way through government make decision, spend their tax naira (N) and

use its authority

IMPLICATION OF IMPROVED ACCOUNTABILITY

To bring about the implication of these principles, a number of

challenges in public sector management need to be taken. They

includes: accountability for result: all economic activities of the

government will need to reflect a result oriented environment in order to

focus the attention of outcomes. This tasks if you have due everything

possible with your authorities and rescues toward achievement of

intended result shares values; accountability many of the current

reforms known as due process, EFCC, ICPS etc. and those being

advocated reflect this, but as the same time accountability also operate

through the information relationships with the government and between

government

The increase need for transparency: some accountability

arrangements are likely to remain closed to public scouting. However,

the incased use of partnerships special operation agencies and other new

services delivery arrangement based on greater organization autonomy

suggest a great need for more open and transparent accountability

arrangement. Transparency is a sustaining element of effective

accountability. It implies that one can see clearly into the activities of

government openness and transparency are essential element of

 accountability which is rightly of the heart of a effective public

government environment taking it easier for this outside government

performance for consistency with police intention for fairness, for

property and sound stewardship

Auditing accountability: greater attention on the public accountability

arrangement is likely to increase the role of audio as a way of providing

some assurance that accountability issues are being adequately

addressed. The basic principles proved the basic need for auditing of

accountability. They are important in ensuring effective accountability

as they connect it to reporting and follow up and this result oriented

management

NEW DIRECTION

Over the years, the various government in the country have tried to

utilize the annual budget to serve the signaled purpose or ands listed

below

i. As a tool for accountability and control of government finance

ii. As a tool for planning and management and

iii. As a tool for economic policy prescription

Unfortunately, those have not been possible for the following reasons

a. The budgets were enclitic in fiscal discipline

b. The budgets demonstrated short terry outcome for government spending

and no value for money

c. There was no predictability in government spending

d. There were no political buy in priorities

e. Budgeting was characterized by weak monitory

These problems were function of the social and political dynamic of the

country and the dictates of the intimation system as they affect the

budgetary and budgeting process in Nigeria Olabode(2005)

In order to meet the purpose of which the annual budget serve, a new

budgeting system must be initiated

It is worthy of note of current creation of a budget officer under the table

leadership of a chartered accountant. With the budget office of been

carefully designed to signify breaks from the past and the chart a

quantum leap forward.

 CHAPTER THREE

RESEARCH METHODOLOGY

3.1 INTRODUCTION

This chapter described the type of research design and methodology

used in the study

According to Yemere and Ahbonifoh (1999) research methodology is

the method or procedure to accomplish the objective of the research

through design, method of data collection and analysis

3.2 Research Design

Considering the objective of research project as statged in chapter one,

descriptive approach has been chosen. This is because the method is

capable of generating useful information for intended purpose and at the

same time identify problems of interest in the topic of discussion

3.3 Source of data collection

Basically two sources of data collection were used to source data. These

are primary and secondary source.

 a. Primary source: this entails the researcher’s generation of information

from its source. It comprises interview and questionnaire. These two

categories were used to solicit response form the respondent

b. Secondary source: this source includes mainly journals text books,

publication, periodical newspaper and magazine on the subject matters.

Equally review one legal documents such as constitution and financial

regulation

3.4 Population of study

The population for the study comprises all staff of the bursary

Department of Federal Polytechnic, Lokoja, Kogi State.

3.5 Sampling Procedure / Size

A simple of one hundred (100) staff were randomly selected from the

total population of the staff in the bursary department

3.6 Method of Data Analysis

The researchers developed ten (10) questionnaire, items which was

distributed to one hundred (100) respondent and were collected for

analysis using percentage and tables. Each task contains the number of
respondents and their responses percentage with short analysis below

them
 CHAPTER FOUR

DATA PRESENTATION, ANALYSIS AND INTERPRETATION

4.1 INTRODUCTION

This chapter seeks to presents in concise form, the information

gathered in the course of this work. It has two principal sections, the

first being the presentation of data in tabular form and further analyzed

into simple percentage, followed by discussion and interpretation of

each of the tables

It is important to note that the insturments used included interview and

questionnaire

The researchers distributed 100 (one hundred) copies of questionnaire

respondents. Only 90(ninety) copies were fill and returned which is

90%. This was sufficient enough for the data analysis

4.2 Presentation and analysis of data

Question 1: good budgetary control improves the performance in public

sector

Table 1: budgetary control and performance

 Option Number of Percentage %

respondent

Agree 73 81

Disagree 17 19

Total 90 100%

Source: field survey, 2023

From the table above 78 respondent which is 81% respondents agreed

that good budgetary control improves the performance in the public.

While 17 which is 19% disagreed/

From the analysis the respondent conclude that good budgetary control

imporves the performance in the public sector

Table 2: budget reduces expenses

Option Number of Percentage %

respondent

Agree 53 59

Disagree 37 41

Total 90 100%
Source: field survey 2023

The table above shjows that 53 respondent which is 59% respond to the

statement which says budget reduce expenses, while 37 which is 41%

disagreed

The analysis above shows that budget reduces expenses

Question 3: the operating budgets are more effect than the capital budget

Table 3: effect of operation and capital budget

Option Number of Percentage %

respondent

Agree 86 96

Disagree 4 4

Total 90 100%
 Source; field survey 2023

The table shows that 86 which is (96%) respondents agreed to

above question and 4 (45) disagree to the question. We therefore, agreed

that the operating budgets are more effective than the capital budget

from the analysis above. The researcher concluded that the operating

budgets are more effect than the capital budget

Question 4: the presence of budget in the public

Option Number of Percentage %

respondent

Agree 80 88

Disagree 10 12

Total 90 100%
 Sources: field survey 2023

From the above table 80 (88%) respondents strongly agreed to the

statement that the presence of monitoring team in the public sector has

made the execution of budget in the public sector effective. While 10

(12%) disagreed. This analysis indicates that the presence of budget

monitoring team in the public sector has made the execution of budget in

the sector effective

Question 5: the government institution has a direct link with the bursary

department in kogi state polytechnic, lokoja.

Table 5: government have a link with bursary department

Option Number of Percentage %

respondent

Agree 80 89%

Disagree 10 11%

Total 90 100%
 Source: field survey 2023

From the table above (80%) respondents agreed with the statement

that government a direct link with the bursary department of kogi state

polytechnic, lokoja. While 10 (11%) disagreed with the statement

From the analysis above the researchers concluded that the

government institution has a direct link with the bursary department in

kogi state polytechnic, lokoja

Question 6: budgeting help the public as the ultimate owner of the

resource to know how the resources are been utilized

Table 6: budget and the resources owner

Option Number of Percentage %

respondent

Agree 88 97.7%

Disagree 2 2.2%

Total 90 100%
 Sources: field survey 2023

The table analyzed above shows that 88 (97.7%) respondent agreed

that budgeting helps the public as the ultimate owner of the source to

know how the resources are being utilized. While 2 (2.2%) of the

respondents disagreed with the statement that budgeting does not help

the public as the ultimate owner of resources to know how the resources

are being utilized. This analysis implied that budgeting help the public

as the ultimate owner of resources to know how the resources are been

utilized

Question 7: the growth of any public sector solely involves budgeting

and budgetary control

Table 7: public sector growth and budgetary control

 Option Number of Percentage

respondent %

Agree 80 88%

Disagree 10 12%

Total 90 100%

Sources: field survey 2023

From the analysis above the researchers concluded that the growth of

any public sector solely involves budgeting and budgetary control

Question 8 :budgeting and budgetary control have significantly imposed

decision making in public sector

Table 8: the budgetary control and decision making

 Option Number of Percentage %

respondent

Agree 75 83

Disagree 15 17

Total 90 100%

Source: field survey 2023

The table shows that 75 representing 83% agreed to the above

question and 15 respondents representing 17% disagreed to the question.

We therefore, agreed that budgeting and budgetary controls have

significantly improve decision making in the public sector.

Question 9: budget is an indispensable tool of economic policy

Table 9: budget as economic tool

Option Number of Percentage %

respondent

Agree 84 93.4

Disagree 6 6.6

Total 90 100%

Sources: filed survey 2023

The table shows that 84 respondents representing 93.3% agreed to the

above question and 6 respondents representing 7.6% disagreed to the

question

This analysis indicate that budget is an indispensable tool of economic

policy
Question 10: good budgeting control improves the performance in public

sector

Table 10: budgeting and performance

Option Number of Percentage %

respondent

Agree 80 89

Disagree 10 11

Total 90 100%
Source: field survey 2023

From the table analysis above shows that 80 respondents which

represent 89% agreed that good budgetary improve the performance in

the public sector, while, 10 respondents which is representing 11%

disagreed. The analysis above shows that good budgeting control

improves the performance in public sector

 CHAPTER FIVE

SUMMARY, CONCLUSION AND RECOMMENDATION

5.1 INTRODUCTION

In this chapter the researcher draw summary of findings in order to

draw up conclusion regarding the objective set up at the beginning of

chapter one

5.2 SUMMARY OF THE SUDY

The purpose of this study is to examine the effect of dubdeting

and budgetary control in the public sector in kogi state polytechnic

lokoja. Based on t he analysis and interpretation of data collected

on will agree that the evaluation of budgeting and budgetary

control is an important part of an organization growth. It was

made clear from the findings that:

1. Budget reduces expenses

2. Good budgeting controls improves performances in public

sector
 3. Budgeting help the public as the ultimate owner or resources to

know how the resources are being utilized

4. The presence of budget monitoring teams in the public sector

has made the execution of budget in public sector effective

5. The government institution has a direct look with the bursary

department in kogi state polytechnic, lokoja

6. The growth of any public sector solely involves budgeting and

budgetary control

7. Budgeting and budgetary controls hae play important role in

the decision making in public sectors.

5.3 CONCLUSION

Public sectors budgetary controls system is an integrated and

indispensable part of establishing effective relationship for getting

things done and taking responsibility. To this end, those who are being

entrusted with the valuable resources of the public should see

 themselves as a tool of improvement rather than that of destruction.

They should sue their office for the advancement of the populace

It is researchers relief that corruption rating of Nigeria by the

transparency international and other foreign government and institution

will improve of our public leaders can take themselves accountable.

Researchers are happy that the efforts being made by current

government to change this trend particularly with the establishment of

the budget, price intelligence monitory unit, otherwise known as the due

process office, such as the independent corrupt practice commission

(ICPC), economic and financial crime commission (EFCC), e.t.c

If our leaders could provide an enabling environment for these

commissions to thrive, Nigeria the giant of Africa will arise again

5.4 RECOMMENDATION

The researcher made s one of the following recommendations for

improved budgeting and budgetary control in the public sector

1. There should be reformation of the entire public system, the

public sector in Nigeria as a whole is devoid of credibility as a

result of the way of being run

2. The operating budgets should be made more effective than the

capital budget. Because the budgeting control helps to improve

the performance in public sector

3. The managers of public sectors should embraces total quality

management (TQM) management concept which assesses

mangers based on their performance

4. Government should improve on the fiscal accountability and

transparency and government managers and employees should

be held accountable for a variety of well-established norms

democratic government

5. Regular and accurate information should be given to both

legislators and general public on income and expenditure

government

REFERENCES
 Akpakpan E.B (2002). Budget formulation, new York megraw hill

higer

education U.S.A P869

Akpakpan E.b (2015). Financial management and budgetary

control in the

public sector. The certified national quality. 14, 27-30

Daitihana G.E and udebunamn R.J (2010). Modern statistics for

economics

and business, auchi H. Germans publisher P289

Edmands T.P Edmonds C.D olds P.R Mcnair F.M, Tsay B, lane

H.W &

Distefano (2008). International management behavior

from policy to practice invelson Canada, Ontario, P92.

Edwards J.R (2013) accountancy for banking students U.S.A, the

chartered

institute of bankers P453

 Emeni F.K (2013). A dictionary of public sector accounting,

Ibadan auchi

anointing publishers

Langfied S.K, Throne H.. and Hilton T.W (2006). Management accounting

4th edition, mc graw hill, austrilai pty limite, pp400 4400d.

Mbieli P. (2006). Public policy ometer publishers ltd onisha, Nigeria p110.

noreen E.W, Garrison R.H and Folk J.M (2002). Introduction to managenal

accounting new York mc graw hill higher education USA pp 2-280

Oseyemi, I.M (2014), Budgeting and financial reporting for economics

management efficiency, the Nigeria accountants No1 P42-45

Ouala E.c (2000). Teach your self business management, Onitsha Nigeria

Africana first publishers ltd.

Seceit, M. (2003). Mastering spreadsheet budgets and forecasts, a practical

guide. www.guardian.co.uk
 APPENDIX

Federal College of Education

Department of Business

Education

P.M.B 1026,

Okene, Kogi State

26th Sept, 2023

Dear Respondent

Perception of Kogi state polytechnic, Lokoja budgetary control in their

institution

QUESTIONNAIRE

The main purpose of this questionnaire is to find out the perception of

Kogi state polytechnic, Lokoja staff on their evaluation of budgeting and

budgetary control In the institution. You are humbly requested to supply the
required pieces of information which the researchers hope will go a long way

in assisting the research

However, be confident that any information supplied shall be treated

with utmost confidentiality and shall be used for the purpose of research only

Thanks for your anticipated co-operation

Yours Faithfully

Kolawole toyosi titilayo (2020/38979)

Lamidi blessing oyiza (2020/38980)

Joshua Nana Esther (2020/38978)

Section A

Instruction: please tic (√) the option below

Sex: male ( ) Female ( )

Age: 25 – 35 ( ) 36 – 45 ( ) 46 and above ( )

Religion: Christian ( ) Muslim ( ) others ( )

Qualification: NCE ( ) OND( ) HND( ) B.EA( ) M.EA( )

SECTION B

Instruction: please tick ( √ ) on the space provided for the test option, key to

scoring: SA= strongly agree, A= Agree, D= Disagree

SD= Strongly Disagree

Part A: Role of Budget and Budgetary control

S/ ITEM STATEMENT SA A D SD

1. Good budgetary control improves the performance

in public sector

2. Budget reduces expenses

3. The growth of any public sector solely involves

budgeting and budgetary control

4. The government institution has a direct link with

the bursary department of the school

5. Budgeting and budgetary control have

significantly improved decision making in public

sector

6. Budget is an indispensable tool of economic

policy

7. Good budgeting control improves the performance

in public sector

8. The operating budgets are more effective than the

capital budget

9. Budgeting help the public as the ultimate owner of

resources to know how the resources are being

utilized

10. The presence of budget monitoring teams in the

public sector has made the execution of budget in

the public sector effective