THE ROLE OF BUDGETING IN THE MANAGEMENT OF PUBLIC INSTITUTION (A CASE STUDY OF ANAMBRA STATE MINISTRY OF WORKS AND HOUSING AWKA).

INTRODUCTION

It is an obvious fact that the success or failure of an organization be it private or public depends on the availability of funds, the management and control of such funds towards the achievement of the organizations aims and objectives. Thus no organization can boast of its existence and satisfaction of its functions without proper budgeting of funds used for the activities of its operations.

The need for budgeting cannot be over emphasized. It is almost impossible to do without budgeting, one would agree whether it be the students with up keeping allowances, the house wives with their housekeeping allowances etc.

Budgeting is a vital tool that plays an invaluable role in our public institution. The application of budgeting has hardly been used widely by the institutions and as a result, the desired transformation or change which budget would have effected in the society has not been achieved. The issue of this budgeting has a lot of impact on the aspects of economy, finance, legal and socio-political documentaries. There are criticisms on the important input of budgeting to the life of every citizen as well as on every sector of the economy. All these motivated the researcher to study the role of budgeting in the management of public institutions, using Ministry of Works and Housing Awka as a case study.

1.0 BACKGROUND OF THE STUDY

Budgeting is defined as financial or qualitative statement, prepared and approved prior to defined time of the policy to be pursued during that policy for the purpose of attaining a given objective. Budget today is not only an economic, financial, legal and socio-political document, it makes an important input on the life of every citizen will as on every sector of the economy. It holds the key to sound economic management and programmed development. Thus Nweke, 1999 was right in saying “When the history of the miracle of Japan is completely written, a chapter must be devoted to its disciplined budgeting system”.

According to Olowe, 1995 during the era of laissez-faire, budget was looked upon merely as a device for securely orderliness and method in management of state finance. In the present, industrial society with complexities and uncertainties, the state’s role in natural property and welfare has assumed a wider dimension and greater significance, with such changing situation characterizing the role of the state there has emerged new conceptions of budgets as a major instrument of social and economic policy. Such objective includes:

1. securing full employment for the citizens as part of the good welfare of the state
2. Redressing the inequalities on the distribution of income and wealth.
3. Increasing productivity and
4. Combing inflation caused by serceral factors.

In the Nigerian system, Agisenira, 1998 averted that the whole ideal about budget in Nigeria has not been given proper time-turning. Most the public officers who prepare the budgets are not well trained and as they lack potential to evolve realistic budgets for the past three decades have not been able to offer desired transformation of the nation. Changes in the economic environment after the budget has been prepared, has been observed. To lead to a change of policy midrtream. The government budget seeks to achieve goals which are nebulous, even contradictory of at times. The charges can range from social to political and economical. These peculiarities make charges in budget very difficult.

Also some forms of budgeting system have not been able to serve as an adequate base for informed decision making at each level of management and they are not helped management to control and appraise performance of various programmes, projects activities and schemes. Again, such forms or types have not made it easy for administrators to see from the existing budge and account heads for what broad approaches and objectives resources are being located.

The above problems which are obvious spared the researcher into caring out an investigation on the role of the budgeting in the management of public institutions, with the Anambra state ministry of works and Housing, Awka as a case of study.

        HISTORICAL BACKGROUND OF INSTITUTION UNDER STUDY

This ministry can be traced as far back as 1918, the ministry wa astablished on 1918 and was named as the Public Work Department (PWD). The major aim of the establishment was to carryout all the issues relating the works, housing and transport divisions.

In 1950, the name was changed from the public work Department to the ministry of works. In nthe subsequent years proceeding 1950, ministry of housing and transport were created and joined to the existing ministry. Before the creation of the new states in 1991, the place was known as the area office and had many departments or offices. Each of the department had one head that reanders accounts on behalf of the performance of such department.

In 1991, when new states were created, Anambra inclusive, the place was changed from the Area office to Headquarters.  The headquarter was made up of area offices or head camp under each local government renders their accounts on the works, housing and transport to the ministry through the various head camp authorities who works directly with the ministry.

The previous governors separated the ministry into the following departments;

Housing, Transport, Environment, Surveyors, Highways and mechanical departments. Each department to be headed by one director. The present governor then on resuming his office joined those separated departments under one umbrella known as ministry of works and Housing.

1.1 STATEMENT OF THE PROBLEM

Budget has now been reduced to mere yearly ritual, with much noise made concerning the presentation to the National Assembly and then nothing is done about the judicious implementation of such budget. Also public officers have been using the yearly budgets to enrich themselves, by converting the proposed amount for the public institutions into their private account. It is against this backdrop, that this study would look at the role of budgeting in the management of public institution in particular the public at large. The study also attempt to pose possible solutions to the problems.

1.2 OBJECTIVES OF THE STUDY

The research work has been designed to look into the role of budgeting in the management of public institutions in Nigeria and the Anambra state ministry of works and Housing Awka as a case study. The study is specifically aimed at:

1. Finding out whether the ministry carries out budget in the organization.
2. The research seeks to look into budgeting as a financial tool of analyzing the performance of public institutions.

• To ascertain hoe budgeting aids public administrators in achieving the goals of their organizations.

1. To consider the extent of commitment by government in the budgeting process of public institutions.
2. To ind out the role budget play in control and management of public institutions and solution to the identified problems have to preferred.

1.3 RESEARCH QUESTIONS

In a bid to accomplish the objectives of the study, certain research questions are to be considered. They include:

1. Does the ministry of works and Housing Awka, prepare its own budgets.
2. Is budget, a financial tool of analyzing the performance of public institutions?
3. To what extent does budgeting aid administrates in achieving their organizational goals?
4. To what extent is government committed to budgeting implementation?
5. Does budgeting play any role in the control and management of Resources?

1.4 STATEMENT OF HYPOTHESE

Ho:   Budget does not aid administrators to achieve organizational goals.

Hi:    Budget aids administrators to achieve organizational goals.

Ho:   Governments are not committed to Budget implementation.

Hi:    Governments are committed to Budget implementation.

1.5 THEORETICAL FRAMEWORK

The theory employed in this research work is scientific management theory as propounded by Fredrick Window Taylor(1856-1915). Scientific management theory views productivity as the major goal of a business organization including public institution, therefore the researcher deem it fit to use it in order to know the role of budget in helping organizations in attaining productivity especially public institutions.

Taylor made significant gains in eliminating waste and set for himself the task of doing whatever was necessary to increase productivity. Likewise in this research work, the researcher trys to proffer or recommend the necessary things to increase productivity through the role budget plays in public institutions and to eliminate waste from the institutions.

1.6 SIGNIFICANCE OF THE STUDY

The findings of this study are expected to be of immense benefit to both the state, Federal government and scholars alike. This is because; it will enable the government and the general public to know the role of budgeting in management of public institutions.

These findings would also be of great advantage to public administrators in achieving their goals in an organization.

Finally, the findings of this study will enhance quality budgeting in public institutions and reduce the level of corruption by the public officers, who has been using the yearly budgets to enrich themselves.

1.7 SCOPE OF THE STUDY

This research work is on the role of Budgeting in the management of Public institutions (A case study of Anambra state ministry of work and Housing Awka)

1.8 LIMITATIONS OF THE STUDY

The researcher encountered some difficulties in the course of the study, some of them are:

Time: Time constrain was one of factors the time allowed to carry out the research has been limited. The researcher had to attend lectures as well as meet up with the right academic schedule.

Restriction of information: Most of the staff of the ministry were afraid of disclosing some relevant information to the researcher. They claimed that disclosing certain information to the researcher would be an offence.

Financial difficulties: A lot of money was needed to pay for transportation fares to and from the ministry of works and that Housing Awka, pay for the production of the questionnaire, to mention but a few.

1.9 DEFINITION OF TERMS

1. Accountability: According to Bayo (1981), it is the efficient adaptation of government policies by experienced civil servants through paper utilization o management system and styles in the administration of materials and financial resources.
2. BUDGET NEGOTIATION: The process of arriving at mutual agreement on the provisions of a contract. The principle of negotiation applies in several contexts and situations. (Tennan and Wilson in Nwoko)
3. PPBS: Planning Programming Budgeting System- which is technique used to analyze activities in strategic terms (Nwoko).
4. ZBB: Zero Base Budget: This is the technique of evaluating from time to time, the continued reference of ongoing programmes (Nwoko)
5. PUBLIC EXPENDITURE: It is the action or the practice of laying out public money presumably in pursuit of public goals. It is the process by which public money is consumed.

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