ASSESSMENT OF BUDGETING IN THE PRESENT NIGERIA ECONOMIC SYSTEM IN CROSS RIVER STATE UNIVERSITY OF TECHNOLOGY

Code No: 853635

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ABSTRACT

This study was carried out to assess budgeting in the present Nigeria economic system in Cross River State University of Technology. Specifically, the study determined the role played by budgeting towards the controls of government fiscal policies, established the relationship between budgetary control and performance in Cross River State University of Technology and, ascertained the extent to which budgeting processes has aided planning for long term survival of Cross River State University of Technology. The study employed the survey descriptive research design. A total of 30 responses were validated from the survey. The study adopted the theory of Budgeting and the Punctuated Equilibrium Theory of Budgeting. From the responses obtained and analysed, the findings revealed the extent budgeting processes aids planning for long term survival of Cross River State University of Technology is very high. Furthermore, the findings revealed that the roles played by budgeting towards the controls of government fiscal policies include influencing the economy, shows how government will prioritise and achieve its annual and multi-annual objectives, helps in financing new and existing programs and is the primary instrument for implementing fiscal policy. The study recommends Cross River State University of Technology should be budget and budgetary control conscious knowing fully well that a budget is a plan and a mirror that guides the organization towards achieving their goals in the labour market.

CHAPTER 1

CHAPTER ONE
INTRODUCTION
BACKGROUND OF THE STUDY
Budget and Budgeting are concepts traceable to the Bible days, precisely the days of Joseph in Egypt. It was reported that nothing was given out of the treasure without a written order. History has it that Joseph budgeted and stored grains which lasted the Egyptians throughout the seven years of famine.
Budgets were first introduced in the 1920s as a tool to manage costs and cash flows in large industrial organizations.
Jean, (2010), states that it was during the 1960s that companies began to use budgets to dictate what people needed to do. In the 1970s performance improvement was based on meeting financial targets rather than effectiveness companies then faced problems in the 1980s and 1990s when they were not willing to spend money on innovations in order to stay with the rigid budgets, they were no longer concerned about how customers were being treated, only meeting sales targets became essential.
It is a requirement as per Serena Group of Hotels Finance policy that each unit has got to prepare budgets from where financial statements prepared on a monthly basis can be compared with. However effective budgetary control has been a problem. What is forecasted monthly is not actually met. In business organizations, budgeting are formally associated with the advent of industrial capitalization for the revolution of the eighteenth century, which presented a challenge for industrial management (Jean, 2010).
However, budgeting at the early state of its development was concerned with preparing and to permit correct performance evaluation and consequently rewards.
Information that management accounting control system helps managers, by monitoring companyâ€Ÿs changing environmental circumstances, to compare opportunities and threats in the market so that they can obtain added value against competitors because it is important in facilitating the preparation of budgets, since budgeting and accounting are closely related (Bruner, 2002).
Budgets are known to have an important role to transmit the expectation of top management to lower levels. According to Brigham, (1979) budgets are used to communicate top managementâ€Ÿs expectations to managers and employees.
According to Lucey. (1993), it is a quantitative expression of plan of action prepared in advance of the period to which it relates, expressed in money terms approved prior to the period.