CHAPTER ONE
INTRODUCTION
BACKGROUND OF THE STUDY
The primary aim of any business organization whether government or private owned is to achieve success in its set objectives. Such profit maybe to maximize profits or render services and success in these areas are measured in terms of any of the following profits, increase in sales and efficient services, return on investment. This aim is pursued within the limits and constraints of given resources, a given economic environment and operating business policy. This is to say that the organisation and the output are derived from those same resources. But it is becoming increasingly difficult for business organizations to accomplish their objectives as a result of the ever changing business environment. Also, resources are scarce and have alternative uses. It therefore follows that the realization of any organization objective requires comprehensive planning, produce and economy. In the acquisition, co-ordination and utilization of the human and material resources with the organization’s disposal, it is also essential that all parties concerned with the organization owners, management and staff know the objective guidance and measurement of activities will be impossible.
Organizations, both in the private and public sectors, prepare annual budgets which serve as stands to be achieved, compel planning in the organization control actions and serve as means of communication in the organization, control actions and serve as a source of motivation. Budgeting used for both decision making as well as allocation of resources. In Nigeria, so many budgets have been pronounced and many of them are policies. All these budgets and policies are made to Nigerians standard of living which is presently nothing to talk about. We all fully experience the poor living standard of the citizens from the date of the nation’s independence till present as government promisingly budget to right all the economic errors for this care, budget in Nigeria as a whole have traditionally promised to tackle. The primary socio-economic crises facing the national as these are auxiliaries to the good standard of living and social development. But the greatest problem facing Nigeria is that the policy direction and implementation of these budgeting plans have always fallen short of a set standard. In order to find the solution to our budgeting economic problems one has to look onward and study the factors that cause the crisis in economic budget. The type of people and environment could determine the type of economic management to be used enslaved of whatever may be the case, it is the solution that we need and want and not the volume of idealism and metaphase. The implementation of these annual budgets is our concern.
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