PUBLIC SECTOR BUDGETING IN PRACTICE: INSIGHTS FROM A STATE MINISTRY OF FINANCE IN SOUTH EAST NIGERIA

Abstract

The study is titled “Budget accounting in the public sector – A study of a state ministry of finance in south east Nigeria”.  The study investigates a problem budget conceptualization, planning, implementation and variance reporting associated with our public parastatals. With the objectives of looking at the quality of staff of the ministry, the contribution of the budgeting process at the ministry and evaluation of budget policy decisions in the state research questions preceded the hypothesis. The study incorporates previous research done by other scholars in the area under study in the literature review. The methodology of study involved primary data as respondents were made up of staff of the ministry. The Pearson method was used. The questionnaire was designed in a Likert structured form because the structured questions provided respondents with possible answers from where they would be required to select those that apply (Monga, 2005). It is noted that the Likert structured questions are easier for the respondents to answer; more reliable because of the fixed presentation of questions and responses. Copies of the returned questionnaire were used to analyze the data for easy comprehension. In analyzing the data the three hypotheses used indicates adequacy of staff quality, the state’s growth can be impaired by poor budgeting practice and that the state’s budget policy is effective. This view is supported by (Dale & Duncalf 1985; Ebrahimpour & Lee 1988; Flynn, Schroeder & Sakakibara 1994). Other studies have demonstrated that support for internal audit effectiveness (Jill 1998; Schwartz, Dunfee & Kline (2005). Mihret, Dessalegn Getie and Yismaw, Aderajew Wondim (2007).The research concludes that the problem being studied was not very significant. It is obvious from the findings that the role of accounting in budgeting by the state ministry was significantly effective because of capable work force, proper budget conceptualization, supervision, planning, monitoring and implementation. By so doing the budget policy decisions of the state has been in congruence with the objectives of policy makers. In these days of dwindling oil receipts and by extension lower federal allocations to the states state governments in addition to managing their limited resources are also advised to explore ways of raising money outside their oil revenue dependent federal allocation. Taxation is the major source of revenue for the state under study. But since there are fiscal loopholes in tax administration the role of accounting in budgeting can be extended to tax administration for improved revenue generation and subsequent appropriation.  Because of the importance of budgeting and auditing to economic activity in both private and private sector, the scarcity of resources to apportion among competing needs new techniques can be studied to enrich literature and new theories explored to improve the art of budgeting for sustainable development