Full Project – THE IMPACT OF BUDGET IMPLEMENTATION IN AN ORGANIZATION

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CHAPTER ONE

INTRODUCTION

Budget, on indispensable tool of administration, the financial strength of an organization and the scale of organizational objectivity and transparently has generally been treated as just merely yearly ritual. Due to this ill application of this administrative tool, the research work in made to embark on this research work in ascertaining it’s impact, effect and evaluation. The issue of budgeting has a lot of impact on the aspect of economy, finance, legal and socio-political documentaries. To every day man, this administrative tool plays an invaluable role to its activities and plans as well as its well keeping thus conventionally arousing disturbing questions on the effects and impacts of the said budget. All these motivate the research to study the evaluation and impact of budget implementation in an organization using ministry of works and housing as a cast study.

1.1  HISTORICAL BACKGROUND OF THE CASE STUDY

It must be knotted that most organizations or management institutions as well as the government mostly blame their setbacks and mal-administration to ill implementation of budget and yet many see budget as just an avenue of securing fund from the approving authority. This contrapuntal believe calls for truism in unraveling the nature, importance and effect of budgeting as an administrative instrument using the Anambra state ministry of works and housing as a yard stick for measuring it’s enigma. The ministry was established in 1918 and was named Public Work Department (PWD). The aims were to carry out issues relating to work, housing and transport divisions.

In 1950, the name was changed to ministry of works. In subsequent years preceding 1950, the ministry of housing and transport was created and joined to the existing ministry. Before the creation of new state in 1991, the place was known as Area office and have many department offices. Each department has one head that renders account on behalf of the department performance. After the creation of states in 1991 which Anambra was inclusive, the name was changed from area office to headquarter, the headquarter was made up of area office or head camp. Each local government rendered account on the works housing and transport to the ministry through various head camp that works directly with the ministry. Former governors separated the ministry into housing, transport, environment, surveyors, highways and mechanical departments. Under Chris Ngige’s regime, he joined these separated department s under one umbrella known as ministry of works and housing which under it’s contest we are doing this our research work.

1.2  STATEMENT OF THE PROBLEMS         

Budget has now been reduced to mere yearly ritual with much noise made concerning it’s presentations and authorizations while nothing is done an it’s implementation which is the ultimate resolution. Sub sit to this statement is the controversy witnessed in the 2010 appropriation bill (Now 2010 budget). Much heat was raised on where the bill should be presented and what protocols to be observed. This unnecessary supremacy and power tussle amongs the senate and the house of representative shows that they view budget as just yearly ritual with which they incure fund and enrich themselves thus forgetting that it’s implementation has it’s administrative proficiency and management. It is now against this backdrop that this study will readly look at the role of budgeting in organizations, public institutions in particulars and the public at-large. It also tries to foster solutions to the problems.

1.3  PURPOSE OF THE STUDY

This research work has been designed to look into the role and impact of budgeting and it’s evaluation in management of public institutions in Nigeria and the Anambra state ministry of works and housing as a case study. Other objectives thus includes: it seeks to determine whether the ministry carries out budget in the organization. Again the research tries to look at budgeting as an administrative tool for analyzing the performance of public institutions. Further more, it intendeds to ascertain how budgeting aids public administrators in achieving their goals on organizations.

1.4  SIGNIFICANCE OF THE STUDY

A popular saying states that “a problem known is half solved”. In line with this statement, this research work tries to identify those factors that causes budget negligence and tries to proffer administrative solutions. This will greatly help public institutions rectify it’s short comings, reach it’s desired goals and maximize it’s productivity and proficiency. Again, it tries to extemporate the invaluable nature of budgeting and it’s impact both on meritious and consequential courses when judiciously or ill implemented respectively.

1.5  RESEARCH QUESTIONS/ HYPOTHESIS

The following research questions have been drawn as a guide to the study.

Does the ministry of works and housing Awka prepare budget for use by the ministry?

Does frequent change of administrators in the ministry affect the budgeting process?

Does budget on it’s impact as an administrative tool capable of transforming Anambra as a state?

Does the ministry implement her budget in-order to meet peoples aspiration?

1.6  SCOPE OF THE STUDY

By scope we mean an area of coverage and this research work covers the ministry of works and housing Awka, members of all staff of all cadre. In the same way, all units or sections of the ministry participated in the study. Descriptive analysis was in the study.

1.7  DEFINITIONS OF TERMS/ACRONYMS

P.P.B.S: Planning Programme Budgeting System is a budgeting technique or system where main goals are on control, management and planning (Igwe, 2006) Z.B.B. Zero Based Budget which is a technique of evaluating from time to time the continual reference of on-going programmes.

Public Expenditure: It is the action on the practice of laying out public money presumably in pursuit of public goals.

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