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This research work was focused on investigation on the use of budgeting
and budgetary control as tools for accountability in government
parastatals. ( A case study of Enugu State Housing Development
Corporation). Budgetary control is a quantitative expression of plane of
action prepare in advance of period to which it relate. The organization is
face with the problem of lack of budgeting while planning and controlling
their activities. The objective of the study is to determine if budgeting and
budgetary control affect the quality of services delivery in government
parastatals. The research also aims at determining if budgetary control
contribute to the improvement of management efficiency and high
productivity. Data were collected from primary and secondary source.
Secondary source of data were collected from textbooks, periodic articles
and journals. Questions were distributed as well as personal interviews
with functional and departmental heads were conducted. The sample size
of 60 were used and was chosen among the number of department /
section using Bowleys proportional allocation formula Data were
analyzed using table and simple percentage, hypothesis were tested using
chi-square statistics. We discovered among other things that budgeting
and budgetary control affect the quality of service delivery in government
parastatals. It was also revealed that budgeting and budgetary control
contributes to the improvement of management efficiency and high
productivity. In line with the above, we recommend among other things
that the budget plan and preparation should be a corporate duty of the unit
heads with head of department in the corporation, improving legislation,
realistic budget target. Adherence in the budgeting provision should be
practiced by top management.
Title Page i
Approval page ii
Dedication iii
Acknowledgement iv
Abstract v
1.0 Introduction 1
1.1 Background of the study 1
1.2 Statement of the problem 4
1.3 Objectives of the study 4
1.4 Research Question 5
1.5 Hypotheses of the study 5
1.6 Significant of the study 6
1.7 Scope and Limitation- 7
1.8 Definition of terms 8
Reference 9
2.0 Review of related literature 10
2.1 Budgeting and budgets 10
2.2 Typology of budgets for planning and control 19
2.3 Features of budget 21
2.4 Fundamentals of budgeting and budget
Administration 28
2.5 Preparation of budgets 29
2.6 Budgeting controls 37
2.7 Innovation in the area of budget
Zero- Based Budgeting (ZBB) 42
2.8 Enugu State housing development corporation
Historical background 50
3.0 Research design and methodology 55
3.1 Research design 55
3.2 Source of data 56
3.3 Research instrument 57
3.4 Reliability/ validity of research instrument 58
3.5 Population of the study 58
3.6 Sample size/ technique 59
3.7 Administration of research instrument 61
3.8 Method of data analysis 61
3.9 Decision criterion for validation of hypotheses 62
4.0 Data presentation & analysis 64
4.1 Data presentation 64
4.2 Testing of hypothesis 83
5.0 Summary of findings, conclusion and
Recommendation 95
5.1 Summary of findings 95
5.2 Conclusion 96
5.3 Recommendations 97
The efficiency and effectiveness of the operations of a business
depends on the control available to management in almost every business
organization, there are a number of activities going on at the same time such
as producing, purchasing, distributing, selling and financing a product.
These are interrelated in such a way that they affect the attainment of the
organization goals.
The institution of cost and management accountant(ICMA)defined
budget as a financial or quantitative statement prepared and approved prior
to defined period of time of the policy to be pursed during the period for the
purpose of attaining a given objectives. It may include income, expenditure
and the employment capital.
Therefore in order to achieve these objectives or goals, the
organization must economize resources and discover the means of achieving
these goals. These goals can only be realized when the property planned use
of available resource are controlled and co-ordinated effectively. Thus a
system of managing a business by making forecast of the different activities
and applying a financial to each forecast becomes imperative. These forecast
are guided by the information and adoption of planned system such as
techniques in budgeting , variance analysis. Etc.
Pandy (2008) defines budgeting control as the establishment of
departmental budget relating the responsibilities of the executive to the
requirement of a policy, and the continuous comparison of actual budgeted
result either to secure by individual actions. The objective of that policy is to
provide a firm basis for its revision.
Osisoma, (2000) opined that budgeting is a systematic and formalized
approach for accomplishing the planning, co-ordination and control
responsibilities of management. It is a process of preparing in advance of the
period to which it relates a summary statement of plans expressed in
quantitative terms, which if utilized with sophistication and good judgment,
would enhance the attainment of an organization’s objectives. A budget
therefore, is a plan quantified in monetary terms, prepared and approved
prior to a defined period of time, usually showing planned income to be
generated and /or expenditure to be incurred during that period, and the
capital to be employed to attain a given objectives.
A budgetary control is described by lucey, (2002) as a quantitative
expression of a plan of action prepared in advance of the period to which it
relates. Budget may be prepared for the business as a whole, for
departments, for functions such as sales and production, or for financial and
resources items such as cash, capital expenditure, manpower, purchase. Etc.
the process of preparing and agreeing budgets is a means of translating the
overall objectives of the organization into detailed, feasible plans of action.
It is therefore, germane to say that the level of importance that is attached in
this plan and effort made in controlling the finance differ in organizations.
Once the goals are set, which must be based on the detailed analysis of
feasibility within the content of the political and social value the plans will
enable it to strive towards its attachment.
Often than not when these plans are put into operation, conditions
prevail which trends to cause deviation from the plan and corrective
measures are always taken to steer the business back on the right track. The
process already mentioned as it is applied entailed budget and its control.
And to lend credence to goal congruence suitable techniques should be
applied to specific areas that need special attention hence measurement of
budgeted with actual to arrive at the finance cannot be over emphasized. A
business is said to be on the right track if the outcome of the budgeted
estimate is favorable as against the actual. The little that is said concerning
this project has encompassed all avenues in which the subject can aid
management decision, rather it should be seen as a guide for people
The growth of the business hinges, or better put, rests squarely units
budgetary control system or techniques hence they are considered as a vital
tools in any business situation. This study then is aimed at assessing and
evaluating the event to which budgetary control has been a tool for the
growth and global realization of any organization.
Lack of budgets in planning and control has required in the
indiscriminate use of fund meant for more viable activities. Again the
inability of many companies to plan and accomplished budget goals is
traceable to their inability to apply controls in their budget system.
Budgetary goals are not realized due to low level of understanding of
the budget system by middle and low level of management staff. Other
problems are shortage of stocks and shut down. These and many more are
some of the problem of lack of budgeting control.
The primary purpose of this study is four fold. They include the
i. To determine if budgeting and budgetary control affect the quality
of service delivery in government parastatals.
ii. To determine if there is a connection between the type of budget
implemented and their actual performance.
iii. To determine whether or not budgetary controls as a management
tools contribute to the improvement of management efficiency and
high productivity.
iv. To find out the use of the budgetary controls as an appraisal
parameter for assessing managers budget.
i. Does budgeting and budgetary controls affect the quantity of services
delivery in government parastatals.
ii. What are the connection between the type of budget implemented
and their actual performance?
iii. How can budgetary control as management tools contribute to the
improvement of management efficiency and high productivity?
iv. How can budgetary control be used for assessing Manager’s budget?
1. H0: Budgeting and budgetary control does not affect the quantity of
services delivery in government parastatals.
H1: Budgeting and budgetary control affect the quantity of
services delivery in government parastatals.
2. H0: Budgeting and budgetary control does not contribute to the
improvement of the management efficiency and high productivity.
H1: Budgeting and budgetary control contribute to the
improvement of the management efficiency and high productivity.
3. H0: Budgeting and budgetary control is not used for assessing
manager’s budget.
H1: Budgeting and budgetary control is used for assessing
manager’s budget.
4. H0: There is no connection between the type of budget implemented
and actual performance.
H1: There is connection between the type of budget implemented
and actual performance.
Budgeting and Budgetary control is a function that is very important
and of great significant to any of organization. It is not peculiar to only the
manufacturing organization but also necessary to service of the government.
The study will contribute towards enhancing profits of the
organization, business or an individual. It will help to control one’s income.
Budgeting is necessary to make matters simple and hence life easy to handle.
Budgeting guides people towards the allocation of money in different
sectors, such as food, shelter, clothing, household expenses, medical care,
utilities etc.
In case of an annual budget of a nation budgeting makes a blueprint
of the overall funds that the concerned government will spend on various
sectors, the kinds of tax that would be levied and how the prices of essential
commodities would increase or decrease in the month ahead.
In summary, this study will be a guide to scholars, researchers or
writers who may wish to carry further study on budget and its control
This study is aimed at finding out the impact of budget and
budgetary control in Enugu State Housing Development Corporation.
The limiting factors are that of availability of data which might be
difficult to obtain following the trend of the attitude of Nigerians with
regards to giving out information. Time constraints are also a limiting factor
in undertaking this study. The availability time and short period of the study
made it difficult for the researcher to carryout a wider and more through
work on the issue, at the same time carryout academic activities.
Also literature on the topic as it relate to government parastatals
is very few.
The following are defined in the work:
BUDGET: Budget simply means estimate of income and expenditure,
which are planned by the organization for a specific future. In Britain, it
means the annual statement made to the house of commons by the
chancellor of the exchequer, giving details of the government financial plans
for the coming year.
BUDGETING CONTROL: This means a system of managing a
business by making forecasts of the different activities and applying of
financial value to each forecast. Actual performance is subsequently with the
THE BUDGETING PERIOD: The budget period coincides with
accounting period. The period varies according to different organization.
THE MASTER BUDGET: This is a total budget package which
effectively combines in one statement, the sells, expenses, production and
cash budget of an organization.
VARIANCE: This is the difference between the estimates and actual
Lucy .T. (2002). Costing: 6th Edition. London Butter Worth
Osisoma B.C. (2000). Studies in Accounting; Afritower Limited
Pandey I.M. (2008). Management Accounting. Third revised Edition.
Delhi;Jitendra Printing Press.


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