CHAPTER ONE
1.0 INTRODUCTION
1.1 BACKGROUND OF THE STUDY
The concept of budgeting is as old man in history. We learnt that the early man had to determine whatever he needed in advance before it eventually materialized.
Ojaide (2002:3) this is very obvious in the present days in the lives of individuals, a state or nation. For one to succeed in this world, one has to plan ahead and map out how to uses limited resources to achieve positive results.
As a nation plans ahead in terms of revenue and expenditure within specific period of time so also an individual, local or state government conceptualizes anticipated revenue and disbursement within a period of time.
This is called budget.
Oparaeke C.N defined budget as a “plan of financial operation stating an estimate of proposes means of financing it. The term budget of government which is presented to the legislative body for approval. A government budget may involve billions of naira, but all budgets resemble one another in certain ways”
Budgets help individual or group achieve certain goals in making them use what ever resources available wisely. Every establishment be it public or private finds necessary to prepare budgets and institute budgetary control for the purpose of translating policies coordinating activities as well as instituting financial control in order to achieve the best possible result. This as budgeting is made both in public and private sector, it can therefore be seen that budget and budgetary control if effectively planned and implemented can be used as an effective management techniques for achieving proper financial management.
1.2 STATEMENT OF THE PROBLEM
There is general awareness all over the world of the need to pay greater attention to the development of government budgeting and control. The reason is obvious government in all nations constitutes the largest single entity and in many places the core of the economy.
Its pattern of expenditure or manner of resources allocation determines the extent to which accountability, economic efficiency and effectiveness can be achieved. The budget system which is very complex should aim at attaining greater efficiency in the use of scarce government resources as well as establishing priorities among completing goals.