BUDGET AND BUDGETARY CONTROL AS A TOOL FOR EFFECTIVE DECISION ANDPLANNING IN MINISTRIES AND PARASTATALS

BUDGET AND BUDGETARY CONTROL AS A TOOL FOR EFFECTIVE DECISION ANDPLANNING IN MINISTRIES AND PARASTATALS

(A CASE STUDY OF MINISTRIES AND PARASTATALS IN IMO STATE)

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ABSTRACT

Budget and budgetary control as a tool for effective decision and planning in ministries and parastatals.

 

The researcher is prompted into choosing this due to the peculiar nature of the topic budgetary control in ministries and parastatals.  In this project work the definition of budget is being known as a techniques their task of planning, coordinating, directing and control in an organization.  For a government ministries to achieve their aims budget must be enlisted in Agenda.  In carrying out this project work the topic identify the objective, statement of hypothesis, significance of the problem and the limitation of the project work.

 

This project work is limited to the budget of Imo state government ministry and parastatals.  Nevertheless profit oriented organization and parastatals make use of different budget to enable them meet their desire goals.  I bid to identify those administrative probelsm personal observations and interview where made and conducted, it was discovered that budget and budgary are the key note of every successful body or organization as a result of policies not being strong enough to beat them to it.

 

Finally budget enjoys a wide application.  They can be used in our private homes where a civil servant who earns and income and plan on it.  Also the same thing is applicable to the ministries and parastatals.

 

TABLE OF CONTENT

Title page

Approval page

Dedication

Acknowledgement

Abstract

Table of content

 

CHAPTER ONE

INTRODUCTION

  • Statement of the problem
  • Statement of the hypothesis
  • Objective of the study
  • Significance of the study
  • Limitation f the study
  • Difinition of the term

 

CHAPTER TWO

LITERNATURE REVIEW

  • Budgets
  • Budgetary control
  • The planning and control process
  • Management by objective
  • Management by exception
  • Budgetary system in non-project secking organization

 

CHAPTER THREE

Research methodology

  • Primary source of Data collection
  • Type of primary source of data
  • Advantage of interview method
  • Secondary source of data collection
  • Type of secondary data collection

 

CHAPTER FOUR

TEST OF HYPOTHESIS

  • Budget and budgetary control in Imo state
  • Review of Imo state government budget
    • 1997 Budget
    • 1998 Budget
    • 1999 Budget
    • 2000 Budget
  • Presentation and analysis of data

 

CHAPTER FIVE

SUMMARY OF FINDING, CONCLUSION AND RECOMMENDATION

  • Summary of finding
  • Conclusion
  • Recommendation
  • Bibliography

CHAPTER ONE

INTRODUCTION

Budgeting is essentially concerned with planning and can be broadly illustrated by comparing with the routine a ship captain follows on each voyage.  Before the voyage, he will plan his route, taking into account such factors as shipping harzards, tides and possible adverse weather forecast.  During the voyage he will check on his plans and record and unusual conditions.  If necessary, he may even have to leviater from his plan if prevailing circumstances require it.  On completion of the voyage he will compare the conditions he encountered with those he expected and use the experience gained in planning similar voyages in the future.

 

Budgets and budgeting control are two accounting techniques, which top management adopts to achieve its tasks of planning, coordinating, directing and control in an organsiation.  Planning is mainly concerned with the establishment of objectives the formulation, evaluation and selection of the policies, strategies factics and actions required to achieve these objectives planning was previously based on historical cost conventions.  This process increased the emergency decision which top management had to make because historical cost conventions arenot future oriented; they do not aid planning.

 

In order to reduce to management emergency decision making processes and thus aid planning, variable budgets were introduced.  This is so because managers want to know more than they have done currently in relation to last period performance, they also want to know how they have done currently in relation to their current target performance.

Control on the order hand follows closely after action has been taken.  If is a process where by actual performance is compared with targeted budgeted performance any deviations from this target are investigated for an in-depth or positive explanations to be given.  Budgetary control is the technique used for this purpose and when it is combined with budget, it becomes part of responsibility accounting the aim of budgetary control is to provide a format basis for monitoring the progress of the organization as whole and of its components parts, towards the achievement of the objectives specified in the planning budgets.

Budgets enjoy a wide application.  They can be used in our private homes where a civil servant who earns a monthly income will map out his objectives and plan effectively with what he haste achieve these objectives.  Both profit-oriented and non-profit oriented organization apply in all three tiers of government –local, state and federal.

 

Profit oriented organization use the type of budget that is output and objective oriented to enabl them know how efficient they have been in managing the resources available to them.  They therefore use the planning programming budgeting system (PPBS) budgeted expenditure is compared with actual performance achieved.  The system is based, not on traditional organizational structure and divisions, but on programmes grouping of activities common objectives.

This is in sharp contract with the type of that is used in non-profit seeking organizations like the local state and federal government agencies.  This is the lineitem budgeting system.  This method is the tradition the traditional approach to government allocation; it is oriented to expenditure and budget relates mainly to the organizations from which they are prepared not for the purpose for which money is spent.

 

  • OBJECTIVE OF THE STUDY

The purpose of the study is to find how budgets and budgeting control is used as a tool

 

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