University of Nigeria Research Publications
NSUDE Chukwudi
Aut
hor
PG/MSC/99/26261
Title
Assessing the Problem of Budget and Budget Implementation in the Ministry of
Federal Capital Territory, Abuja
Facu
lty
Social Science
D
epar
tmen
t
Public Administration
Dat
e
December, 2001
Sign
atur
e
ASSESSING THE PROBLEM OF BUDGET AND BUDGET IMPLEMENTATION IN THE
MINISTRY OF FEDERAL CAPITAL TERRITORY, ABUJA.
BY NSUDE CHIIJKWUDI
PGlMSCl99126261
e- SUB-DEPARTMEPJT OF PUBLIC
ADMINISTRATION AND LOCAL GOVERNMENT, UNIVERSITY OF NIGERIA, NSUKKA.
b
DECEMBER 2001.
TITLE PAGE
UNIVERSITY OF NIGERIA, NSUKKA
ASSESSING THE PROBLEM OF BUDGET AND BUDGET IMPLEMENTATION IN WE MINISTRY OF FEDERAL
CAPITAL T@RITORY, ABUJA.
A THESIS PRESENTED TO THE SUB-DEPARTMENT OF PUBLIC ADMINISTRATION AND LOCAL GOVERNMENT, UNIVERSITY OF NIGERIA,
NSUKXA. w
Y .i YW 4-
BY NSUDE CHUKWUDI
PG/MSC/99/26261
< DECEMBER 2001 L
iii
UNIVERSITY OF NIGERIA, NSUKKA
SUB-DEPAXITMENT OF P UBLlC ADMINISTRATION AND LOCAL GOVERNMENT
We hereby certify that the thesis
NSUDE CHUKWUDI PG/MSC/99/26261
Entitled: Assesshg the Problems of Budget and Budget Impleincntation in the Ministry of Federal Capital
p*iu,w i
.......................... Intern a1 Examiner
........... 8' '3.. ......... External Examiner
b .................................. Dean qf%aculty
mmcym10w
This work is dedicated to Almighty God and Late Mr.
Oforbuih~ Nsude whom I lost when I needed him most.
I wish to express my profound and sincere gratitude to my project
Supervisor, Dr. Fab. Onah for his guidance throughout the writing of this
thesis.
Sincere appreciation goes to Dr. B. C. Nwankwo, Coordinator of the
department of Public Administraticn and Local Government, Dr.(Mrs.)
Ogionu, for their encouragement and professional advice.
I am also, indebted to my father, Chief Odo Nsude, my wife, Ebere,
brothers and sisters, Rev. N.N. Nsude, Iyke, Chinweuba, Nkechi, Nugwu
and Ngozi.
I owe iininense gratitude to Rt. Rev. J.O.I. Nnona, Rev. (Prof.) C &
Mrs. Nebo, Chief Gordi Agbo for their invaluable assistance.
Finally to those I am unable to mention, I would always remain
grateful.
Nsude Chukwudi.
This research was carried out to assess the problems of budget and
budget implementation in the Ministry of Federal Capital Territory, Abuja.
In order to execute this stcdy, three research questions were
formulated. The sample population consisted of one hundred and five
workers of three departments namely Finance, Budget, and Planning,
Research and Statistics (PRS) of thz Ministry. Data for' the study were
collected by means of the researcher 's designed questionnaire which was
validated by the researcher's supervisor. Frequency tables that was
converted into linear percentages were used in data analysis.
Finally, summary of findings, conclusion on the research and
recommendations were made. It was therefore recommended that:
1. Budget Planning should be taking seriously for it is the threshood
of eveiy successful budget.
2: I .dequate skilled personnel should be engaged.
3. Annual budget should be executed in line with the set standard.
'4. Monitory and evaluation of projects should be strictly followed.
. 5. Anti-corruption crusade should be intensified to check corruption
in both high and low places.
vii
Table 1: Questionnaire distribution and return schedule
Table 2: Distribution of response to cuestion I
Table 3: Distribution of response to Question I1
Table 4: Distribution of response to Question I11
Table 5: Distribution of response to < ,estion IV
Table 6: Distribution of response to Question V
Table 7: Distribution of response to Question VI
Table 8: Distribution of response to Question VII
Table 9: Distribution of response to Question VIII
Table 10: Distribution of response to Question IX
Table 11: Distribution of response to Question X
Table 12: Distribution of response to Question XI
viii
Title page
Approval page
Dedication
Acknowledgement
Abstract
List of Tables
Table of contents
CHAPTZR ONE:
Background ofthe study
Statement of problem
Objective of the study
Significance of the study
Scope and limitations of the s t u ~ y
CHAPTER TWO:
LITERATURE REVIEW
Budget (Historical Development)
Budgeting Concept.
Budget and organizational objective
iv
v
vi
vii
viii
Budget -participation
Budget processes
Budget monitoring as implementation tool
Budget measurement and evaluation
Budgetary problems
Hypotheses
Operationalization of key conce2t.s
Methodology
Theoretical framework
CHAPTER THREE:
Background information on the Ministry of the federal
Capital Territory, Abuja. 37
CHAPTER FOUR
Presentation and Analysis of Data. 43
CHAPTER FIVE
5.1 Summary of findings, conclusic~~ and Reco~ninendation 5 4
5.2 Conclusion 5 5
5.3 Recpmmendation 56
Bibliography 5 9
Appendix A: Questionnaire 62
CHAPTER ONE
1.1 BACKGROUND TO THE PROBLEM:
Nigeria is rich but majority cf her citizens are poor. Although,
evidently, generously endowed, Nigeria has been unable to transform its
riches into economic development commensurate with her level o f
endowments. Thus, the vast majority of Nigerians suffer in the' midst of
plenty with more than half of the population living below the poverty line.
The reason for this state of affairs is attributed to the fact that economic
development plans have not achieved the desired resu'is. Where sound
economic policies were enunciated, implementation has been shoddy and
has at best stunted growth. The difference between the rural poor and the
urban poor has become insignificant.
The challenge pacing Nigeria since independence has not been one
of ability to generate wealth. The challenge has been one of efficiently
managing its wealth to the advantage of a larger fraction of its citizenry.
Attempts made so far to meet - this challenge, has provided opportunity for
Nigeria to experiment with a number of economic and fiscal options through
its budget.
It is imperative at this time based on the country's experience to
review its budget and budgetary processes in order to gain a clear
perspective as it concerns taxes, expenditures, debt and the er. iomy as a
whole.
Taking a look back to the pi-" briefing on the 1999 budget by the
then minister of State for finant 2, Akpan Etuk-udo, the main policy
objectives and programmes of the 1999 budget was geared towards: -
i. Achieving a minimum of 3% overall growth rate of the GDP,
ii. Establishing institutional, legal and regulatory framework as well
as policy reforms necessary for economic growth and
diversification;
iii. Maintaining appropriate fiscal monetary and exchange rate
policies with a view of achieving overall macro-economic stability,
iv. Continuing with the policj of privatization of state owned
enterprises;
v. Sustaining the single digit inflation rate achieved for most of the
1998 fiscal year;
vi. Enhancing efforts at capacity building and utilization;
vii. Sus.iaining prudent external and internal debt management
systems;
viii. Reducing the level of unempioyment b
ix. Expanding the existing reveme base by exploring near source of
revenue
x. Improving the internal security system to create a safe
environment and;
xi. Developing and rehabilitating physical infrastructures to facilitate
investments and economic activity.
These enunciated policies well, geared towards uplifting the leaving
standard of the people but questicns remain, do all these principles
responded only remain in paper. What constitutes the difficulty in applying
the theory into practice? Are the theorists unclear as to their objectives, or if
these objectives are inapplicable ar,d unrealizable in the reality of the
administrative contexts to which they are directed.
1.2 STATEMENT OF PROBLEM:
It is a common knowledge that most government establishment in
Nigeria are not performing up to expectations. The fact that all of them are
run with allocations from Government rather than out of results of their
performance has given rise to the problem of hiding inefficiency in these
establishments. The other problem from this dependency syndrome
subsidy includes the problem of inadequate strategic and operational
planning with the result that their budget grow out of precedents
(incremental)
Many studies have been conducted by administrative scholars on
the causes and dynamics of the worsening productivity and pnnr
4
performance of our public establishments, but very little attempt has been
made to examine the nature of budget and budgetary processes, and to
see if there is any relationship between the current method of budgetary
process as compared with the low productivity
The federal capital territory administration has the status of a state
just like any other states in Nigeria but it is being run more as a federal
ministry in line with the federal civil service rules which invariably, places it
under the head of service of the federation.
Considering the dual nature of Federal Capital Territory
administration some fundamental question were raised.
i. What is the nature of budget and budgetary implementation in the
federal capital territory?
ii. What are the factors that have militated against the effective
budget implementation in the federal capital territory.
iii. Federal capital Territory is enjoying both the status of a state as
well as a ministry, therefore, could this uncertain status be
affecting its budget and budgetary implementation since the
budget cannot clearly define as either a state or a ministry's
budget.
It is the task of this study to proffer answers to the above questions.
1.3 OBJECTIVE OF THE STUDY:
Project or programme implementation has been the basic of most
countries. Programme failure in such countries are caused by various
factors such as excessive haste in planning, faulty planning, performance
failure and corrupt practices.
Based on the assertion stated sbove, it is the objective of this study
to;
i. Critically examine the budgetary control mechanism of the ministry
of fednral capital territory, Abuja.
ii. Identify the factors responsible for the poor implementation of their
budget
iii. Make recommendation based on the findings.
1.4 SIGNIFICANCE OF THE STUDY:
This study is expected to contributed to the existing knowledge and
burgeoning literatures dealing on the impact of budgeting for effective
control in federal ministries and other government agencies especially the
ministry of Federal Capital Territory Abuja.
The significance of the study also lies in the fact that not only will the
result of the. study reveal the inhere~t strengths and weaknesses in the
administration of budget in Government establishments, the elimination of
such weaknesses, where they exist, wiil no doubt improve the performance
of Government establishments.
The findings and recommendations will also guide top government
functionaries, members of both the Federal and State legislators on the
need for proper budget implementation, it will also contribute and stimulate
further research interests in this area of budgeting and budget
implementation.
1.5 SCOPE AND LIMITATIONS OF THE STUDY:
This stucy is designed to cover and assess the problems of budget
implementation in the ministry of federal capital territory, Abuja.
The limitations encountered in the course of this work ranges from
time constraints to financial problems.
The time span for the study was inadequate in view of the
complexities involved in the type of problem, the research was poised to
address.
However, the research probed into key issues which dealt with the
problem it set out to solve.
Finance was also a major handicap, given the huge financial
involvement in the collection of both Primary and Secondary data, needed
for effective 'completion of this resaarch. These notwithstanding, the
research was successfully concluded with the limited resources available for
the work.
CHAPTER TWO
2.0 LITERATURE REVIEW
2.1 BUDGET (HISTORIAL DEVELOPMENT)
The history of the origin of budget is tied to the struggle of the
common taxpayers in England to control the revenue (or taxation) and the
spending propensity of the English King. Thus, in 1213, King John I of
England summoned four knights per country to discuss taxation. These
four knights per country were the first representatives of the common
taxpayers to be associated wish the rea at council of the King. This became
the first time common tax payers were involved in determining directly the
revenue and indirectly, the expenditure actions of the King. The assembly
of the common tax payers became the nucleus of the House of Commons
in England.
However, the first instance of the budget occurred in 1353 when a
subsidy on wool was granted the King'of England solely to prosecute wars.
. In 1385, parliament again granted Richard 11, 15% of the total proceed on
wool, while in 1405, Henry 1V was granted tonnage and poundage by the
commons. Subsequent other Kings were compelled to present estimates of b
their needs to the English House of Commons. In 1800, these estimates
started to be printed and published. In 1847, the selected committee on
miscellaneous expenditure of the House of Commons recommended thgb
"the votes for civil establishment at home and abroad be arranged under
the head of civil estimates and preser'qd separately to the House". Hence
forth, each Government dep~itment (Ministry) started estimating its own
needs with greater details and accuracy.
During the nineteenth (19th) century, an interesting phenomenon
occurred. The tax riot as a characteristic form of political expression died
out. Its demise may be associated with a rising standard of living and less
onerous forms of taxation but it is also reasonable to associate it with the
rise of representative government and specifically, with the development of
national budgetary processes.
While the element of modern budgeting existed previously (notably
the consolidated fund in Britain) the first budget in Europe was prorogated
in France with thz restoration of the monarchy after Napoleonic wars
(Bruguiere 1969) the then minister of finance, Baron Louis announced a
complete break with previous financial disorder, expediency and corruption.
"We are going to present the most exact
evaluation of our neads possible, the sum
necessary to operate th? ministerial departments.
'Then, we shall offer a proposal of the ways and
means of meeti~,g them. Each ministry is
guaranteed the regular employment of funds put at
its disposal. These funds are in the most rigorous
proportion possible to its needs for the services
performed. If c1assificat:'ons are necessary, each
minister has to place before you all the elements
necessary for you to form your opinionJJ
(Marion, 1927)
2.2 BUDGETING CONCEPT:
Budgeting is a common phenomenon. To some extent, everybody
does it. People budget time, money, food almost everyday. The sole
proprietor budgets, so do Local, State and Federal Government.
Many scholars have attempted to define and explain the term
"Budget". A study group of the '"British Royal institute of Public
Administration (1959) had observed that there is no precise, generally
accepted terminology of Budgeting, it has also noted that the word
"budget" is used to refereed to many kinds of statements of future plans
and expectations, varying enormously in their form and content, the use to
which they are put, and even their very names. Hence, while some
organizations talk of "programmes" or "forecasts" other talk of "budgets" or b
" estimates".
Horgren (1973) defines budget as "a quantitative expression of a
plan of action and aid to co-ordination and implementation". Paundy (1973)
refers to it as "a comprehensive 2nd co-ordinated plan expressed in
financial terms for the operations and resources of an enterprise for some
specific period in the future.
A keynote that emerges from the various efforts to define the
concept is that budget is a quantitative expression of a plan of an
organization. And this is embodied is a broader definition given by the
institute of cost and works Accountants (in W.W Biggs 1972) that a budget
is financial and/or quantitative statement, prepared and approved prior to a
defined period of time, of the policy to be purshed during that period for the
purpose of attaining a given objective. This may include income,
expenditure and the employment of capital.
Weston and Brigham (1959) posit that Budgeting represents
"planning and control device that enable management to adapt to it ". in
short, they see it as any financial plan serving as an estimate of and a
control over future operations.
The essence of budgeting is to plan the activities of an organization
to facilitate decision making, co-ordination and control of operations. In
other words, they assist to shape the future of the establishment towards b
the achievement of desired objectives. Apart form providing a formal plan
for the establishment of activities, it also cJ.-----l~n;clate, infcrmation to
employees, such information may be out-put targets, staff training and
development programmes, social security and health programmes.
Buckley and Mckenna (1972) described the key feature of budgetary
control as a yardstick for comparison. The planned programme is meant to
be perceived by management as a target that should motivate managers
towards achievement of the goal implied by the budget.
The motivational aspect of budgeting involves persuading
employees to work towards objectives. Simply, it is the driven or desire to
attain a target. This function is achieved by the budget via participation of
employees and subordinates in establishing budget objectives, whereby
they obtain sense of belonging and recognition. Also, management plans
programmes affecting welfare, security training and health are clearly
stated and communicated throughout the budget.
Willsmore (1973) described budgeting as a systematic approach to
the future tnrough the expression of the forward plans of the various
departments of a business, buying, production, selling, research in financial
terms". ~ c c o r d i n ~ to him,
The preparation of these plans and the consideration of
the hnpact on one plan or the other, focus the thought an
judgment of the persons responsible for ht success of an
entec~rise upon the programmes embodied in the
budgets. And in so doing, mud? that would otherwise be
overlooked is automatically brought attention.
Budgets are also one of the approaches applied to execute an
organizations strategylforward plan. A strategylforward plan is one that
extends into the future and covers a psriod of three (3) years and above. It
is produced after assessing internal and external strengths of an
organization taking into consideration available resources (money,
materials and men). The budget is thus short-term instrument used to split
the strategiclforward plan into stages for effective implementation and
control.
Brown and Howard (1975) simply said budgeting "as being
essentially concerned with planning" they described budget as,
"A predetermined statement of management policy during
a given period which provides a standard for comparison
wish the result actually achieved. Budgetary control on
the other hand is a system of controlling costs which
includes the preparation of budgets, co-ordinating the
departments and establishing responsibilities, comparing
actual performance with the budgeted and acting upon
results to achieve maximum pfi+itabiIity"
According to them, the main objectives of budgetary control are:-
ii.
iii.
iv.
v.
vi.
vii.
viii.
ix.
To combine the ideas of all levels of managems f in the
preparation of the budget.
To co-ordinate all the activities of the business.
To centralize control
To decentralize responsibility on to each manager involved.
To act as a guide for manzgement decision when unforeseeable
conditions affect the budget.
To plan and control income and expenditure so that maximum
protitability is achieved.
To direct capital expenditure in the most profitable direction
To ensure that sufficient working capital is available for the
efficient operation of the business
To provide a yardstick against which actual result can be
compared.
To show management where action is needed to remedy a
situaiion.
Organizations recognize direction as corporate entities to enable
them steer through the environments in which they operate and achieve set
objectives. 'P, well managed establishment is that whose employers have
direction and understanding of her activities. This will be difficult to achieve
if there is 173 documented/budget which spells out the planned activit;--
quantitatively for use in meeting budgeted objective. The budgetary tools,
planning, control, motivation, co-ordination, classification of authority and
responsibility constitute the main features of a manager which are best
executed in organization through the budget. The importance of budgeting
is therefore, it is used as an effective instrument for good management of
materials, personnel and finance. Employees require to be evaluated on
their performance in achieving set objectives, this is made possible by
using the budget as a tool for ccmparing actual and budgeted results
highlighting favourable and adverse variances for rewards and punishment
to the establishment concerned. Budget is unequivocally an ideal
managerial tool for organizational growth and development.
2.3 BUDGET AND ORGANIZATIaNAL OBJECTIVE:
Objective constitute the aim or purpose for which any organization is
set. In other words, they represent the reason for establishing such
organization. Objectives maybe long-term or short-term. Long-term
objectives are those that established to be achieved over a period of three
(3) years and above while short-term objectives are those that are
established for achievement within three (3), six(6) months and one(1) year
as the case maybe.
Essentially, organizations pursue various objectives which may
. . include, r,. turn on capital employed, personnel welfare, sc
responsibilities such as infrastructure development. The budget
incorporates these objectives and directs the organization's effort towards
their achievement. Budgeting is thils an activity established to assist,
monitor programmes quarterly or yearly.
Locke (1968), suggests that,
"Setting specific goals is more productive than not setting
goals and urging employees to do the best they can,
conscious goals regulate behaviour, ambiguously stated
goals can lead to the confusion, tension and
dissatisfaction of employees. "
A clearly established objective is of immerse benefit to
organizations. It provides a reference to management in order that activities
and actions are brought under constant reconciliation to prevent diversion
of interest and goal. They also assist in line with clearly established budget
to ensure co-ordination by providing comparison and evaluating
performance.
Latham and Yuki (1975) identified that "task goal clarity and
specificity has a positive effect on the goal. Commitment, goal achievement
and satisfaction of employees." 'Neil established budgets provide
performance standards against wl,ich to measure effectiveness of
employees ir! achieving set goals. Every employees would want to kno\:,
16
the objective pursued. This is done to enable the employee compared
assess his set objective. It is therefore clear that lack of clearly defined
objectives destroy employee morale and reduces motivation to achieve
result.
Otley (1978) identified that budgetary data plays an
important role in the evaluation of managerial
performance, for a budget can be used to represents
standards of both effectiveness, and efficiency, it
represents a standard of effectiveness in so as it
specifies, a set of desired output and a standard of
efficiency to the extent that it detailed the input deemed
necessary to produce the specified output"
Budget specify standards of achievement of objectives, Ir, ,hbly,
they constitute the most relevant and genuine tool for evaluating and
measuring the performance of'management. With the budget, activities of
management in the area of ability to use initiative to achieve results,
efficiency in the use of resources (machines, materials, personnel, and
finance), corporate tax-payment, social responsibilities could be assessed,
evaluated dnd measured.
Budgets clarify authority and responsibility and in this way, properly
eliminates any bottle necks in the wheel of progress to organizational
objective.
Ambode (1990) also saw budget as "as a document of articulation of
goals, objectives and programmes expressed in simple financial terms".
Accordingly, Pandey (1985) posit that budgeting is a means of achieving
set goals and objectives. All plannirig pre-supposes that objectives and
goals have been clearly and unambigcously established.
Organizational objectives are embodied in a budget document
properly prepared after taking into consideration the various circumstances
affecting the organization.
2.4 BUDGET-PARTICIPATION:
Budget participation is the extent to which an organization's
members participate in preparing the budget goals. Management operate
through people and the budget shobld be devised to ensure that the facts
shown by the figures are interpreted into actions by the people responsible.
Participation by managers in budget development has been
advocated as a way to increase employee motivation, reduce b
organizational conflict and enhance or improve the overall performance of
the organization.
According to Scott (1960) "Budget have a very high chance of
success when every effort is made to secure the aid and co-operation of
employees". This view has been advocated by many management writers
and practitioners that it is necessary for individuals for whom plans are
being made to be fully informed dlrring the planning process and be
consulted when the plan is translated into a standard of performance.
In the view of Argyris (1953) the best way to gain acceptance is to
have supervisors all participate in the making of the budgets that affect
them. This view was also supported by Thomas (1968), who wrote that:-
"Ideally in the budgeting process, participation results in a
plan of action including a proposed amount of
accomplishment and an estimate of the costs to achieve
it- if parlicipation has been successful, then the proposed
level of costs and accomplishment are expected as goals
by the participants. In effect, these projected levels of
achievement. Becomes the levels of aspiration of
managers of the organizationJ:
Different reasons were proffered by authors to substantiate the
importance' of participation in budget setting.
, Welsh (1986) contended that it was virtually impossible for the
manager to have first hand knowledge of all the relevant factors opi- . .
throughout an establishment and that a single individual could not be
expected to have the range of experiewe and competence to make all the
decisions for an establishment.
Hanson (1966) feels that "the act of becoming involved in budget
creation enables the members of such establishment to associate more
closely with the budget goals". Lowin (1968) suggests that the activities
involved in a pr?paratot-y situation should contribute to the internalization of
organizational goals.
Bruns and Waterhouse (1975) identified that participation in
budgeting was related to participation in other decisions, and concluded
that, in more diversified firms, lower level managers are likely to be better
informed about the capabilities of their specialized activities and involving
them in budgeting is likely to yield more realistic plans and provide positive
motivational effects.
Participation in decision making and planning is viewed by
managers as democratic and as an organizational socialization approach to
employee development, growth and efficiency
Not all writers related participztion to the success of budget. The a
view of Louderback and Domiak (1978) was that imposed budgets could
reflect' achievable, realistic performance in a study by Stedry (1960) it was
suggested that participation in budget.preparation was not as beneficial as
having management set the budgei. He pointed out that participatory
budget may only be desirable where low bucgets are given. This was
because, with a low budget, manager, supervisors, foremen would likely
fees that they are capable of achieving grater efficiency.
Some writers (Scott 1960, Decoster and Schafer 1982) expressed
their opinion that participation could bring about a tendency to under
estimate in order to make the task easy, or to overestimate in order to
impress sup?rvisors. This view suggests that estimation in a participatory
environment was usually inaccurate.
Most empirical studies on the impact of participation on performance
have yielded rather inconclusive results. In his study on the effect of
participation on performance, Yuki (1971) could not reach any term
conclusions. After citing a number of empirical studies, VI,. (1 964)
concluded that as subordinates were given a larger influence in decisions,
their performance improved, partly because of ego involvement which
participation ,generated. Steer (1976) found positive and significant
relationships between participation in task goal setting and job satisfaction,
but no relationship between participation and employee performance. b
The most severe criticism offered against participation, wrote Stedry
(1960); "is that the perceived increased morale which supposedly resul:
does not necessarily result in increased efficiency.
2.5 BUDETARY PROCESSES:
Budgetary processes are th.e means by which budgets are
formulated and carried out. In the most basic sense, budgets are simply
documents that set out projected income and expenditures for a given
period and budgetary processes are the procedures used to compose
these documents. But public budgets and budgetary processes have a
much deeper significance. They represent fundamental aspect of modern
democratic government, and their institutionalization reflects crucial
concepts in po:'.ical administrative and economic thought.
Budgetary processes are poli,ical in nature. B ~ ~ d y t s are the
published expression of commitments of resources raised from the public.
Budget processes embraces the institutions and procedures established to
resolve the recurring conflicts above the level of resources to be raised and
their sources, and the purposes to which they should be committed.
Budgetary processes thus, ref lxt political processes, but add to
them, two distinctive elements. First, budgetary processes are infinite in
nature. The budget battle is fought every year and every year must find
resolution in the published budget. If .i': does not, the process break i 1
and crisis ensures. The cyclical decisicn process thus helps shape the rule
of he political process adapted to periodic resolution of disputes (Schick
1980).
Secondly, the figures i n the bildget are not mere declarations of
purpose but binding legal commitments that are enforceable against
governments. While changes may be made after budgets are passed, such
transfers, supplementary may only be carried out according to law.
On Presidential systems, budgetary processes were mere
complicated, since executive and legislature share power over budgetary
decision making. There is a divisior, of labour between congress and
president in which the congress retained ultimate power over
appropriations while the executive t o ~ k on the role of General Manager
proposing and implementing decisions of the congress. As long as both
executive and legislature acted with restraint, and there was no
fundamental disagreement between them, the constitutional separation of
powers are not an obstacle to the successful implementation of the
executive budget. But with the emergence of adversarial relationship
between executive and legislature, budgetary policies became highly
unstable, and the executive budget was only the starting y i n t for
legislative Wranghing (Caiden 1987)
2.6 BUDGET MONITORING AS IMPLEMETATION TOOL:
The budg'et is a very complex documents budget implementation is
a much more complex job. Implementation involves "co-ordinating,
monitory, and control of performance of various groups and the use or
project resources in such a way that all project activities are completed in
an optimal fashion within the constrain: of time and resources available".
The procedures for implementation need to be closely supervised to
ensure strict compliance with agreed or laid down standards. Such close
supervision will also ensure that a61y decision is easily detected and
correction made before many harms are done. This process is known as
monitoring. t!umRLem m= wtm !J'!BAAR?l
According to Slade, R.(1984) " monitoring is the timely gathering of
information on project inputs, out puis and complementary activities that
record progress of a project towards the achievement of its objectives. It
should continue throughout the projec-2s life and compare actual inputs and
out puts and activities with the expected or planned levels". It should alert
project management and policy makers to actual or potential
implementation problems requiring action. The purpose of monitoring any
project at all is, by the provision of relevant information, to indicate to those
concerned, whether the operation, performance, and impact of an
endevour is on course.
Clayton and Petry (1985) ~ o s i t that information got through
monitoring, which indicates inadequate operation, shortfall is performance
and discrepancy between stated objectives or predicted impact and those
achieved, prcvides the basis for remedial actions. Monitoring puts the
authority in the know of the progress of implementation or execution of
projects for which such authority makes fund available.
Writing on the importance of monitory, Deboeck (1985) noted "that
monitoring is an important management tool to provide timely information
on the progress and problems of a project in the process of
implementation. When it is based cjn several cases, monitoring should
provide information on deviations form the project objectives, on the
problems that are encountered, and on ways in which project management
can take renredial action promptly".
There are many salient points that can be deduced from the various
views on monitoring; that monitori~g is a management tool for timely
information on project implementa:ion; that monitoring is capable of
facilitating identification on deviations form project objectives; and that
monitoring could provide information or make suggestions to management
as to the correction of these deviations. Thus, if government is to have a
reliable information on the progress of budget implementation, the need for
budget monitoring cannot be over-en-.phasized.
As already alluded to, the budget is a complex document, which is
multi-facet ahd multi-dimensional; from the fiscal to the financial policies,
from the recurrent to the capital ~roject expenditures. Furthermore, the
imp1ementa:ion of the annual budget cuts across the various federal
ministries and agencies on one the hand to the states and local
Government on the other hand. There is, therefore, particular need for
monitoring. Additionally, the huge amount of money committee to the
execution of some projects necessitates the monitoring of the use to which
money is being put.
According to Deboeck (1985), the main reason for budget monitoring
are
i. To keep track of budget progress
ii. To p,mide feedback to government on the achievement of budget
objectives.
. . . III. TO serve as a "warning" mechanism for government, and
iv. To help prevent or solve problems encountered during
implementation.
There is no doubt that a lot is expected from monitoring as an
activity in control, especially of ttie budget and its implementation.
However, as many reviewed literatures have revealed, monitoring selfdom
meets the high' expectation of supply of timely and relevant information to
management.
Clayton (1981) observes that most agencies resist monitoring
because is exposing their deficienciss of operation and performance, it
reveals the wi-lakness of these agencies and their management.
Monitoring must be based on objectives already set, that must be
achieved at a given scale or target. The effectiveness of any monitoring
activities is predicted on the premise that there are set objectives, that
there are targets to be met at specific time or period. The effectiveness of
monitoring will greatly depend on the precision with which the targets and
objectives are diffident, on their validity and on whether they can be
quantified.
2.7 BUDGET MEASUREMENT AND EVALUATION:
The question arises, if there is any yardstick by which budget
implementation, performance and impact can be measured. Measurement
presupposes that there are indicators that can be weighed or gauged to
determine performance. According to Mehrens and Lehmann (1978) using
observations, rating scales or any other device that allows us to obtain
information in a quantitative form is rr!easurement. Also, measurement can
refer to both the score obtained and tile process used. Thus asses sir;^ and
scoring implementation performance of any projects, is measurement.
Another integral part of policy analysis activity is the evaluation of
the conduct, efficacy and efficiency of human resources programs. It is b
necessary and important to asses bo:h the on going public programs in the
various sectors of the national life. Evaluation is to judge or weigh merits, it
is the examining and weighing merits,.it is the examining and weighing of a
phenomenon against an explicit and implicit yardstick.
According to Weise, C.H. (1972) an American Congress woman,
Diryer, captured the essence of progrzm evaluation thus,
"It is becoming increasingly clear that much of our
investments in such areas as education, health, poverty,
Jobs, housing, urban Develo,ament, transportation and
the like is not returning adequate dividends in terms of
results. Without for a moment lessening our commitment
to provide for these pressi~g human needs, one of
congress major, though, often delayed, challenges must
be to re-assess our multit~!des of social programs,
concentrate (indeed, expand) resources on programs that
work where the needs are greatest, and reduce or
eliminate the reminder. We na longer have the time nor
the money to fitter away on non- essentials which won't
produce the needed visible impact on problems. Without
doubt, the foregoing bears reievance to the evaluation of
the dudget implementation
2.8 .BUDGETARY PROBLEMS.:
Budgctary problems abound and these includes the followlng: -
i. Lack of reliable data to fully implement performance budgeting
system. The current situation can be described as budgeting and
planning without facts.
ii. Ineffective co-ordination of Government economic policies such as
fiscal, monetary, balance of payment, exchange rate and income
policies.
iii. Duplication of functions within the ministries themselves and
between ministries and their pa:-astatal.
iv. Allocation of resources on the bases of political patronage,
philosophy of cake sharing, rule of the thumb, haggling rather than
base them on some degree of economic analysis.
v. Lack of proper feasibility studies on government projects and
programme which could have been used for decision making.
vi. Inability of the Ministry of finance, National planning commission
and executive agencies to translate macro framework into micro
programmes..
vii. The distribution of resources over several projects which
encouraged, the culture of abandoned projects, and
viii. Irregular budgeting releases to executing agencies is an attempt to
contain government borrowing from the banking system.
Budget is a very important i~strument in financial management,
which if handled seriously and expertly, will facilitate smooth operations
and good governance.
2.9 HYPOTHESES:
For the purpose of this work, the following hypotheses are
advanced;
I.
ii.
iii.
The problem of budgeting and budget implementation in the
Ministry of federal capital territory, Abuja is as a result of lack of
effect'. re budget implementation control unit.
The problems of budgeting and budget implementation is as a
result of corruption in Nigeria.
The problems of budgeting and budget implementation is as a
result of the uncertain status of the ministry of Federal Capital
Territory, Abuja.
2.10 OPERATIONALIZATION OF K.3Y CONCEPTS:
BUDGET :
A plan of financial operation embodying an estimate of proposed
expenditure for a given period of time and the proposed means of financing
them.
IMPLEMENTATION:
This is the act of co-ordinating, monitoring and control of
performance of various groups and the use of project resources in such a
way that all project activities are completed in an optimal fashion within the
constraint of time and resources availaile.
MONITORING:
This is the supervision of implementationlexecution of any project to
ensure compliance with laid down procedures or agreed standard and to
detect and correct deviations.
PLANNING:
This is the act of deciding in advance an organizational goals and
objective, and the effective and efficient means of achieving the set goals
and objectives.
CALL CIRCULAR:
Director of budget's memorandum to ministerial and allied
departments calling for draft estimates of the departmental or ministerial
estimated revenue, and expenditure for the ensuring financial year.
EVALUATION:
This is 'tne process which attempts to determine at systematically
and objectively as possible, the relevance effectiveness, efficiency and
impact of activi ies in the light of specified objectives.
ACCOUTABILITY:
May refer to the arrangement made for securing conformity between
the values of a delegating body and the person or persons to whom powers
and responsibility are delegated.
FISCAL POLKY:
This is a major weapon government use or have for controlling the
economy.
AUDIT:
An exa,.iination into accounts or dealings with money or property by
persons appointed for that purpose.
BUDGET REALIZATION:
The attainment of budgeted target (s) in an acceptable manner
started in the budget without unnecessary deviations or variance.
2.1 1 METHODOLOGY:
The purpose of this section is to explain in detail the strategy
adopted in this research.
(1) POPLLATION OF THE STUD'I:
The population of the study vslill include the three budget corrected
departments of the Ministry of Federal Capital Territory which is the
Finance Budget, and Planning, Research and Statistics department
(P.R.S.)
(ii) SAMPLE AND SAMPLING TECHNIQUE:
The sample of this study will be one hundred and five workers drawn
from the three mentioned departments of the ministry. This number agrees
with the sample size estimate by Nwana (1981 - 72) "if the population of the
study is in few hundreds, a 40% or more will do; if many hundreds, a 20%
sample, if a few thousands, a 10% anrl if several thousands, a 5% or less
will do.
These one hundred and five will be selected using a random
sampling technique.
(iii) SELECTION OF DATA:
In selecting the data used for the research, two main types have
been employed. They are: -
(a) Primary data
(b) Secondary data.
The primary source includes the use of questionnaires, interviews
and personal observation.
Secondary source consists of information already in existence
before the need to carry out this wxk was concerned. My secondary
source of data in this regard includs Journals/Magazines, unpublished
works and textbooks that relate to planning, budgeting, controlling and
implementation.
(iv) PROCEDURE FOR DATA COLLECTION:
The collection of data for the research was multi- dimensional
involving a wide spectrum of research techniques. This includes
questionnaires, and interview.
The questionnaires were administered on hand to hand basis to
sample respondents of one hundred and five workers out of which, a
hundred and one of the questionnaires were retui ned.
(V) METHOD OF DATA ANALYSS:
Data cdlected will be analyzed, using frequency tables that will be
converted into linear percentages fcr understanding and comprehension.
The linear percentage was adopted because of its ability to translate into
questionnaires, values, attribute, which are quantitative in nature. It
enabled the researcher to look at the variables one at a time.
2.1 2 THEORETICAL FRAMEWORI::
Any research of importance must be properly rooted in a theoretical
framework. The importance of a theoretical framework in a study like this, is
to provide theoretical foundation on which the study is based and the
relationship that exists between the theory and the particular study.
Kelinger (1979) defined Theory as a "set of interrelated constructs or
concepts, definitions and prepositions that present a systematic view of
phenomena by specifying relations bmong variables with the purpose of
explaining and predicting the phenomena".
Due to the nature of the problem to be addressed in this study, I
shall apply the structural/functionaI approach theory. Structural-functional
framework was developed by Talc03 Parson and Marion levy although,
variations of this theory were also associated to scholars like Gabriel A.
Almond, William C. Mitchell, Karl Deutsch, Leonard Binder and Carl G.
Hempel. The promise of structural -functionalism is nothing less than to
provide a ccxistent and integrated theory from which can be derived
explanatory hypotheses relevant to al! aspect of a political system.
Functional approach is generally used by scholars in political
science which refers to the contribution of an activity or pattrnc: of
behaviour to the maintenance of a system in a given society.
It refers to the observable eff€cts of an activity that are n;, try to
the sustenance of the system.
ANALYTIC FRAMEWORK:
Mitchell,-like other structural-fmctionalists, concede that the present
stage of development falls short of scientific social theory. Despite
variations in terminology and some confusions within the approach itself,
structural-fut-ctional analysis does embody certain characteristics features.
First, is an e nphasis on the whole system as the unit of analysis. Second,
the postulation of particular functions as requisite to the main tenance of
the whole system. Third is the concern to demonstrate the functional inter
dependence of diverse structures wit hi^ the whole system.
Mitchell also offers your requisite functions which are performed by
the polity; the authoritative mobilization of resources to implement goals,
the integration of the system and the allocation of values and costs.
Although, this theory has been widely criticized by many analysis for
its rigidity and inflexible nature in the sense that it is conservative and not
change oriented, yet, the peculiarities in the problems of budget
implementation seem to emphasis strxture, and that is why this approach
seems more appropriate.
This thesis has to do with the performance of the relevant structures
in budget implementation. In relation to our study, Druker (1973) opined
that "goals and objectives must first degenerate into a financial plan of
operation which is the budget". The wide gap between planned goals and
actual performance in most establishrnent at present, is due largely to the
lapses in the general budget circle to perceive the vital role of budget as
the bridge between plan and action. As function is referred to the
contribution of activity or patterns oi behaviour to the maintenance of a
system , in a given society. As it.; applicable in structural-functional
approach, any breakdown of the functions, or roles assigned to thc
structures of any establishment will lezd to a disfunction w h i, '; a negative
contribution to the system.
Finally, structural-functionalists have employed a - 9 t : - - ' - - of
frameworks for poiitical analysis which have provided some oi to
assess the applicability of these frameworks to ones own interest an(. s e
explanations justifies the use of the structural-functional approach theory.
CHAPTER THREE
3.0 BACKGROUND INFORMATION ON THE MINISTRY OF
FEDERAL CAP1TC.L TERRITORY
Nigeria, like some other nations of the world, chose to relocate her
capital in order to meet the challenges of modern times. The relocation
exercise was unique in the sense that t+e site chosen was a virgin land, as
well as the center of the country.
There were virtually no modern facilities, structures, assets or any I
form of real development inherited to facilitate and ensure smooth
movement of the seat of the federal .government. Thus, Abuja had to be
developed from the scratch. Abuja today, holds out many promises given
the wide range of human, financial and material investments in developing
its environmental, social, economic and political potentials.
It all started when however, Nigsria decided to change its capital in
the 1970's following the growing unsuitability of Lagos as both a state and
Federal capital. On August gth, 1975, the then military head of State of
Nigeria set up a parcel to examine the question of a new capital for Nigeria
in all its ramifications. The seven man committee was headed by Dr.
Akinola Aguda. The other members, very well respected in their various
discipline included Dr. Tai Solarin, Professor 0 . K. Ogan, Colonel
Monsignor Pecho Martins, Chief 0wen Fiebai, Alhaji Mohan,, J Musa
lsma and Professor Ajato Gandonu with Chief E. E. Nsijik as Secretary.
The panel was enjoined to come up with a magic wand (if that was
what was needed) to solve the intractable problems of Lagos as federal
capital. The committee was guided by th3 following terms of reference:
I. To examine the dual role of Lagos as a state and federal
capital and advice on the desirability or otherwise of the city
retaining that role.
ii. If the committee found that Lagos was suitable, for the dual
role, it should recommend which of the two governments
should move to a new capital.
iii. If the committee found that the federal government should be
moved out of Lagos, it should recommend suitable alternative
locations, having regard to the need for easy accessibility to
and from every part of the country.
iv. The committee should submit its recommendation to the
federal military government not later than December 3lSt,
1975.
The committee immediately went to work. They embarked on
extensive tours. In addition, memoranda were called from members of the
Ministry of the Federal Capital Territory (MFCT) came into being as the
supervising ministry of the Federal Capital Development Authority (FCDA).
THE ministry has a number of departments which are equivalent to
ministries in the states.
The 1979 constitution of the Federal Republic of Nigeria, section 263
of the constitution provides that:
"The provision of this constitution shall apply to
the federal Cii, a1 territory as if it were one of
i'le states of the federation; and accordingly,
(a) all legislative powers, the executive powers
and the judicial powers vested in a House of
Assembly, the President of the Federation and
in the courts which by foregoing provisions are
courts established by the Federal Capital
Territory1'.
The Federal Capital Territory is curved out of three n, ouring
states - Niger State, Old Kwara State and Old Plateau State. The Territory
was divided into seven development areas, namely:- Bwari Development
Area, Kuje Development Area, Kwali Development Area, Karshi
Development Area, Abaji Development Area, Rubochi Development Area
and Yaba Development Area.
With the Delegation of powers to the minister of the federal capital
territory, the development areas evolved initially into four area councils.
With the recent creation of additional local government areas in the
country, Abuja gained two additional area councils. The six area councils
have the same status with local government areas in each states of the
federation.
Federal capital territory is bour,ded in the north by Kaduna State, on
the West by Niger State, on the East and South East by Nasarawa State
and on the South West by Kogi State. The early studi~s on the ethnic
grouping in FCT were contained in the contributions by scholars on the
origins of the people in the middle belt. Early contributors like W. Morgan
(1912) and M. F. Nandel (1936) traced the indigenes of FCT to the Beriberi
or Kamuri stock from Bornu. However, latest studies from scholars like A.
Obayemi, Stanford and K. Williamscn have faulted these early thoughts.
Several archeological evidence have indicated that the FCT indigenes were
of the KWA Language group. Other groups in the FCT are Bassa, Gade,
Gwandara, Koio and Ganagana, all of which have deep affiliation with the
KWA language.
Having explained the evolution of FCT, and both the ethnic groups,
the development of FCT became pertinent. The development of this new
capital posed a daunting financial challenges. Project financing was single
handedly provided by the federal government. This financing are made
through the annual budget release made to FCDAJMFCT for capital
projects and special funds made available for special projects. The capital
projects are the normal FCT projects which facilitate the administration of
the territory, for which provisions are made in the annual capital budget.
Thus, the capital budget are mainly for the provision of funds for basic
infrastructural social facilities as well as their maintenance.
There are also specially funded projects which are classified as
Direct Federal Government projects under the National :viority projects
which are beyond the financial capacity of the FCT but funded by the
presidency through the Central Bank of Nigeria but monitored by the FCT.
There exist also projects funded of the federal government but
through the FCT. Also are projects funded by both the federal government
and the FCT and finally also, are FCT single funded projects. All these
classified projects affects and influences the FCT's budget.
CHAPTER FOUR
4.0 PRESENTATION AND ANALYSIS OF DATA:
In this chapter, the data collected were systematically presented and
analyzed to determine the relevance of the study. The response to the
questionnaires were written down in frequencies and converted to
percentages. The response and their percentages were then presented in
tables with brief discussions based on the eleven research questions
formulated to guide the study.
4.1 QUESTIONNAIRE DISTRIBUTION SCHEDULE: - A total of one hundred and five (105) copies of questionnaires were
distributed to both finance, budget and planning, research and statistics
departments of the ministry of federal capital territory, Abuja.
Table 4.01 Questionnaire Distribution & Return Schedule
Distribution and Return
Total number distributed Percentage Number
105
Total number returned I tionnaires were
101
distributed to various respondents, it goes further to show that out of this
figure, 101 (96.2%) were returned which 4(3.8%) were not returned.
The above-table shown that .a total of 105 que!
Question 1 :
Do you have a budget committee or budget control unit in the Ministry
of Federal Capital Territory?
Tablc 4.02 Distribution of Response to Question 1
Table 4.02 above shows that there is a budget committee in the Ministry of
Federal Capital Territory, Abuja. 101(100%) do subscribe to this view.
Que~l ion II:
How would you rate the effectiveness and efficiency of FCT's budget
and i:s prospect?
Table 4.03 Distribution of response to question I I
I Options I Frequency I Percentage Frequency
. Excellent
Very Good
Good
Poor b
Total
-
3 1
70
- 101
-
30.7%
69.3%
-
100%
The table above shows that 31 (30.7%) of the respondents rated the
effectiveness and efficiency of FCT's budget and its prospect very good
while 70(69.3%) rated the effectiveness and its efficiency just good. This
shows that the effectiveness and efficiency of FCT's budget and its
prospect cannot be rated very good.
Question Ill
Do you consider the budget an effective and efficient tool for
assessing the performance of the workers?
Table 4.04 Distribution of Response to Question Ill
Table 4.04 above shows that 68(67.3%) of the respondents considered the
I Responses
Yes
No
Total
budget an effective and efficient tool for the assessing the performance of
the workers while 33(32.7%) do not consider it an effective tool.
Frequency
68
33
I01
This explains that budget can be used as an effective tool for
Percentage frequency
67.3%
32.7%
100%
assessing the, performance of workers.
Question IV
In your opinion, does budget discipline lead to budget effectiveness
as a planning and control tool?
Table 4.05 Distribution of Response to Question IV
Responses I Frequency I Percentage frequency I
I I
The table above shows that 69(68.3%) of the respondents
subscribed to the view that budget discipline leads to budget effectiveness
while 32(31.7%) thinks otherwise. It could be inferred generally from the
above that budget discipline leads to budget effectiveness.
Question V
Do you consider the budget indiscipline a constraint to the use of
budgeting as an effective planning and control tool in your ministry?
Table 4.06 Distribution of Response to Question V
I Responses I Frequency I Percentage frequency (
I Yes I 92 I 91.1% I
Total 100%
The table above shows that 92(91.1%) of the sample population are of the
view that budget indiscipline constitutes a constraint to the use of budgeting
as an effective tool for planning and control while 9(8.9%) sees it otherwise.
Thus, it can be -said that budget indiscipline do impede on the use of
budget as a planning and control tool.
Question VI
Do you attribute the ineffectiveness of budgeting in your ministry to
the general corruption in Nigeria public sector?
Table 4.07 Distribution of Response to Question VI
Responses
Table 4.07 shows that 53(52.5%) respondents do agree that budget
Yes
No
Total
ineffectiveness is as a result of the general corruption in Nigeria public
sector while 48(47.5%) do not agree to this view.
Frequency
By the analysis above, it can be inferred that budget ineffectiveness
can be attributed to the general corruption in Nigeria public sector.
b
Percentage frequency
5 3
48
101
52.5%
47.5%
100%
Question VII
Do you thing that established budgeting policies, plans, and
procedures of doing things are being consistently and effectively
implemented?
Table 4.08 Distribution of Response to Question VII
Frequency
I I I I
The table 4.08 above shows that 49(48.5%) of the respondents do agree
that established budgeting policies, plans and procedures of doing things
are being consistently and effectively implemented while 52(51.5%) of the
respondents disagree. Majority of the disagreed respondents attribute the
inconsistency to corruption.
Question Vl l l
' Do you think that satisfactory returns on investments are realized
over the complete economic circle when budgets are used as
Yes
instruments for planning? b
49 48.5%
Table 4.09 Distribution of ~ e s ~ o n s e to Question Vlll
Responses
Yes
No
I I I I
The above table shows that satisfactory returns on investments were not
Frequency
1 Total 101
realized over the complete economic circle when budgets are used as
instruments for planning and control. This view is derived from the analysis
of the data above which shows that 53 (52.5%) as upholding this view as
against 48(47.5%) that did not quite agree with the view.
Question IX
Does the uncertain nature of FCT as either a state or a ministry
Percentage frequency
48
5 3
100%
contribute to the ineffectiveness of its budget policies?
Table 4.10 Distribution of Response to Question IX
47.5%
52.5%
Responses I Frequency
Total I 101
Yes
Percentage frequency
8.9%
91.I0h
100%
9
I I A In the table above, 9(8.9%) of the respondents maintains that the uncertain
nature of FCT as either a state or a ministry do contribute to the
ineffectiveness of its budget policies while 92(91.1%) of the respondents
disagree.
The analysis shows that the uncertain nature of FCT either as a
state or a ministry do not contribute to the ineffectiveness of its budget
policies.
Question X
Do you think that the effectiveness, of the budget could be attributed
to adequate qualified personnel in your ministry?
Table 4.1 1 Distribution of Response to Question X
Responses I Frequency I Percentage frequency
1 Yes 1 82 1 81.2% I
1 Table 4.11 above shows that 82(81.2%) of the respondents assets that the
I I
effectiveness of the budget could be attributed to adequate qualified
personnel in the ministry while 19(18.8%) did not buy that view.
100% Total
Question XI
101
The budgets are prepared to meet certain targets, what is usually your
feelings when these targets are not met? a
Table 4.12 Distribution of Response to Question XI
I Responses I ~ r e ~ u e n c ~ Percentage frequency r
I I I Table 4.12 above shows that no person feels happy whenever the set
I - ~ ~ P P Y
Unhappy
Undecided
Total
objeclives or goals are not being met. However, 99 (98%) of the
respondents replied that they feel rather unhappy over such a situation, the
-
99
2
101
other 2(2%) of the respondents are just indifferent over such situation.
4.13 SUMMARY OF FINDINGS:
- 98%
2%
100%
According to Nwana ('1981), he opined that 40% of a study in a few
hundred is a good representative of a research work. In view of this, I am
taking 40% of the total staff number in the three departments finance,
Budget and Planning, Research and statistics (PRS) which is 262 staff out
of which a sample size of 105 of the population was chosen.
The survey was concluded based on the eleven self-administered
questions formulated for the study. With the help of the data collected,
presented and analyzed, the following findings were made
I. . There is a budget committee or budget ol unit in the
Ministry of Federal Capital Territory, Abuja.
II.
iii.
iv.
v.
vi.
vii.
viii.
The effectiveness and efficiency of FCT's budget and its
prospect cannot be rated very good.
Budget can be used as an effective and efficient tool for
assessing the performance of workers.
Budget discipline always lead to budget effectiveness as a
planning and control tool.
It can also be inferred that budget ineffectiveness can be
attributed to the general corruption in Nigeria public sector.
This ineffectiveness of the budget is also attributed ,to
maladiministration of the past military regimes, and general
indiscipline on the side of civil servants.
The established budgeting policies, plans and procedures of
doing things are being slightly, but not consistently and
effectively followed.
The parameter used in the determination of a satisfactory
returns on investments as it concerns the budget is not being
realized over the complete economic circle.
Federal capital territory has the status of a state as well as
being a federal ministry, but this uncertain status does not in
any way, contribute to the ineffecti,.?. qess of its budget
policies.
ix. It is evident that the effectiveness recorded so far in the
budget of the ministry of federal capital territory is as a result
of adequate personnel of the ministry.
x. Budgets sets objectives or goals to be attained within a time
frame and also defines the source of revenue and how much
to expand. People are not usually happy when this set
objectives are not being met. The reasons attributed ranges
from funds being diverted to projects that were not budgeted
for, or inflation, or that the budget preparation was defective.
CHAPTER FIVE
5.1 SUMMARY OF FINDINGS, CONCLUSION AND
RECOMMENDATION
This work is tailored essentially towards assessing he problems of
budget and budget implementation in the Ministry of Federal Capital
Territory, Abuja. Following the Research questions and the analysis of the
questionnaires, the following findings in a summarized manner emerged.
Researrh question one critically examined the budgetary control
mechanism of the Ministry of Federal Capital Territory -)nd the findings
suggest that there is a budgetary control mechanism in i ministry. The
findings also asserts that the complete budget structure or circle can only
be assessed through the effectiveness and efficiency of FCT's budget. The
study shows that in as much as the budget cannot be rated very good, it is
said to be fairly moderate.
Research question two suggests to identify the factors responsible
,for the poor implementation of the budget to various factors which includes
as follows:
i. Inconsistent economic status of the country because of b
inflation and other mistakes in Nigeria macro economic
policies.
ii. Diversion of funds to projects which the funds were not
budgeted for
iii. The effect of long military rule
iv. Inadequate skilled personnel
v. Finally, the general corruption in Nigeria public sector.
5.2 CONCLUSION:
The budget is a very complex document, budget implementation is a
much more complex job. This is because, implementation involves "co-
ordinating, monitoring, and control of performance of various groups and
the use of project resources in such a way that all project activities are
completed in an optimal fashion within the constraint of time and resources
available.
Based on the stated act above, the procedure:: implantation need
to be closely supervised to ensure strict compliance th agreed or laid
down standards. Such close supervision will also ensure that any mistake
is easily detected and corrections made before many harms are done.
It is pertinent at his stage of our national development to fully
understand the project within the society that the government want to
embark onlethe intrigues and complexes will help in the formulation of
budget.
Although, we can say that everyone does budget even in our homes,
we should not see or approach a national budget from that perspective. At
the level of federal or National budget is serious polities, interest,
considerations and influence both internal and external. At this level also is
when the responsibility of spending the tax payers money is eminent and
caution should be taken especially by the people (bureaucrats) in whom
these responsibilities were reposed.
Budget in itself cannot make any impart on the society unless
implemented and in the course of its implementatior if involves human
effort and on this note, is the need to understand the I- ;is for the adoption
of the structural-functional theoretical approach whicl LO a great extent,
provides a consistent and integrated theory from wl ' h can be derived
explanatory hypotheses relevant to all aspect of a politicnl system.
5.3 RECOMMENDATION:
Iiaving come to the end of this study, and also having analysed the
questionnaires, I hereby recommend that for effective and efficient budget
taking from the perspective of budget implementation, the following has to
be taking into cognizance:- b
I. Planning:- Much attention should be taking at this stage for
planning is the first face of the process which could be
considered as, a projected course of action, . means of
reaching an end; a specially designed process for reaching a
rational decision; a deliberately focused means of full
utilization of the resources of the nation for their effective
implementation.
ii. Adequate skilled personnel should be employed. They should
follow carefully and simultaneously the formulation and
implementation process of the budget to a logical conclusion.
At intervals, they should embark on workshops/Seminars to
up date their knowledge with the dynamism of the society and
the budget.
iii. As one English proverb goes, practice makes perfect.
Democracy should be encouraged because, under a
democratic setting, the bureaucracy works well and its impact
will be shown on the effectiveness and efficiency of budget.
Military rule should be seriously opposed.
iv. Annual budget should be executed in line with the set
sfandard. Shunting of projects, a situation were funds are
diverted to projects not initially budgeted for should be
'discouraged and if there is need for extra budgetary
spending, a supplementary appropriation should be sought
from the National Assembly.
v. Monitoring and evaluation of projects should be strictly
followed. While monitoring keeps records of major projects or
programme activities, evaluation uses records assembled
during the monitoring stage and other infortnation obtained, to
make judgment in terms of success or failure of project
implementation as well as the attainment of desired impact on
the population. -Ff?sf!V' OF; N@EIY~
vi. Finally, Anti-corruption crusade !#%@$$ intensified to ride
Nigeria Public Sector of serious corruption, both in high ahd
low places and also, total eradication of tribalism, ethnicity
and also, religious divide. If these recommend~tions are
taken into consideration and adhere to, prcj 1s of budget
and budget implementation will gradually fizzle out in the
Ministry of Federal Capital Territory in particular and Nigeria
in general.
BIBLIOGRAPHY
Adamolekun, L. (1983) Public Administration; A Nigerian and Comparative
Perspective, Lagos: Longman.
Adibayo, A. (1989) Principles and Practice of Public Adtninistration in
Nigeria Ibadan, Spectrum Books Ltd.
Akpan, N. U. (1982) Public Administration in Nigeria, Ibadan, Longman
Aliyu, A. (1998) Nigeria Economic Breakthrough, Abuja; FEAP Computer
Services.
Anthony, R. N. (1965) Planning and Control Systems. A framework for
analysis Boston, Howard university Press.
Ardant, G. (1975) Financial Policv on Economic Infrastructure of Modern
States and Naitons in C. Rilly (ed) The formation of National
States in Western Europe. Princeton, University Press.
Dretrod, D. *1988) Budgeting for Modern Government, New York, St.
Martin's Press.
Brown, J. L and Horward, L. R. (1983) Managerial Accounting. Estover
~l~&iouth, MacDonald and Evans Ltd.
Britain, H. (1954) The British Budgetarv System, London, George Allen and
Unwin Ltd.
Casley, D. J. (1987) Project Monitoring and Evaluat i~~ Aqricualture.
John Hopkins University Press.
Delbert, C. M. (1977) Handbook of Research Design and Social
Measurement. (3rd ed), New York, Longman.
Horngreen, C. T. (1 990) Cost Accounting. A Managerial Emphasis,
Englewood, Cliffs, New Jersey, Prentice Hall Inc.
Koontz, Harold, O'Donnell Cyril, Wehrich Heriz, (1983), Manaqement,
London McGraw - Hill International Book Company.
Koontz, Harold, (1986), Essentials of Management. New York; McGraw -
Hill Publishing.
Nwana, 0. C. (1981) Introduction to Educational Research for Students
and Teachers, Ibadan, Heiremen
Pandey, I. M. (1985) Financial Management. New Delhi, Vani Educational
Books.
Welsch, G. A. (1976) Budgeting, Profit Planning and Control. New Delhi,
Printice Hall, PVT Ltd.
Wholey, J. S. (1979) Zero base budgeting and programme Evaluation.
England, Lexington Books .
SEMINAR PAPERS
Basah (2000) Seminar paper presented on a 3 day wor1f-17m p of budget,
Rolling plan, implementation, monitoring and c:. A, organised
by the federal capital development authority (FC \) Abuja.
Dean, U. and William, 0 . A. (1998) Evaluation of Performance
(Unpublised).
Fadeyi, B. Programme Monitoring, Programme Evaluation and Programrnc
Reporting. (Unpublished)
Okeke, C. (2001) Seminar Paper Presented on a 3-day Workshop on
Budget and Rolling Plan, Preparation, Monitoring and Control,
Organised by the ~ederal Capital Development Authority
(FCDA) Abuja.
QUESTIONNAIRE
Sub-dept of Public Administration And Local Government University of Nigeria Nsukka.
SirIMadam
ASSESSING THE PROBLEMS OF BUDGET AND BUDGET
IMPLEMENTATION IN THE MINISTRY OF FEDERAL CAPITAL
TERRITORY, ABUJA.
I am a masters degree student of the above sub-department and school
carrying out a research on the above underlined subject matter. My area of
study covers the Ministry of Federal Capital Territory budget and budget
implementation.
This work which is in practical fulfillment for the award of a higher degree
by the sub-department is a basic requirement for ht successful completion
of the programme. To therefore, elicit information from you on the above
topic, this questionnaire is directed to you as a staff of the Ministry.
Please, accept my gratitude as you answer the questions below.
Thank you for your Co-operation.
Yours sincerely,
Nsude Chukwudi b
SECTION A
In answering the question mark X in one of the boxes provided against
each answer which you consider most appropriate.
1. RankIPosition .......................................................
2. Your length of Service
(i) I-5yrs [
(ii) 6- I Syrs
(iii) 15yrs and above
3. Your Department
(i) Finance [
(ii) Budget [
(iii) PRS [
4. Highest qualification
(i) SSCEIGCE
(ii) ONDINCE
(iii) HNDIBSC
(iv) HIGHER DEGREE
SECTION B
1. Do you have a budget committee or Budget control unit in the Ministry
of Federal Capital Territory?
Yes C I No [ I
2. How would you rate the effectiveness and efficiency of F.C. T's budget
and its prospect.
Excellent [ 1
Very Good [ 1
Good [ I
Poor [ I
3. Do you consider the budget an effective and efficient tool for assessing
the performance of the workers?
Yes I No [ I
4. In your opinion does budget discipline lead to budget effectiveness as a
planning and control tool?
Yes [ I No [ I
5. Do you consider budget indiscipline a constraint to the use of budgeting
as an effective planning and control tool in your Ministry?
Yes ' [ I No [ I
6. Do you attribute the ineffectiveness of budgeting in to the general
corruption in Nigeria public sector.
7. Do you think that established budgeting policies, plans and procedures
of doing things are being consistently and effectively implemented.
8. Do you think satisfactory returns on investments are realized over the
complete economic circle when budget are used as instruments for
planning?
9. Does the uncertain nature of FCT as either a state or a ministry
contribute to the ineffectiveness of its budget policies?
Yes [ ] No [ 1
10. Do you think that the effectiveness of the budget (. ! be attribute go
adequate qualified personnel in your ministry?
11. The budgets are prepared do meet certain targets, what is usually your
feelings when these targets are not met.