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.