THE ROLE OF BUDGETING IN PUBLIC SECTOR MANAGEMENT (A CASE STUDY OF ETHIOPE EAST LOCAL GOVERNMENT AREA OF DELTA STATE). A RESEARCH PROJECT MATERIAL ON ACCOUNTING

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THE ROLE OF BUDGETING IN PUBLIC SECTOR MANAGEMENT (A CASE STUDY OF ETHIOPE EAST LOCAL GOVERNMENT AREA OF DELTA STATE). A RESEARCH PROJECT MATERIAL ON ACCOUNTING

ABSTRACT

ascertain and explain the roles of budgeting in public sector management with particular reference to ETHIOPE EAST LOCAL GOVERNMENT AREA OF DELTA STATE.The study includes an introduction and the following related sub-parts overview of the subject, statement of the problem. Objectives of related literature.  Also to be included are, research methods, i.e. sources of data, instrument of data collection, method of data analysis, presentation and analysis of data, findings and recommendations.Furthermore, the obvious problems of collecting data through questionnaires, oral interview, library reading and obtaining budget (revenues and expenditure) estimates of the local government area for the relevant year (2001 – 2003) will be addressed squarely.Furthermore, in public sector management emphasis would be laid on:

(i)                 Planning as a guide to policy formulation:

(ii)               Control and Appraisal of Government Expenditure;

(iii)             Efficient and Effective utilization and channeling of Government Revenue Resources;

(iv)             Prudence, transparency and accountability;

(v)               Giving a sense of direction to Government workers involved in the attainment of targeted goals.

 

CHAPTER ONE

1.1              INTRODUCTION

Business environment is characterized essentially by uncertainties; these uncertainties can reduce the business profit opportunities.

The possibilities of these suspected uncertainties being taken care of or controlled are largely dependent on the ability of the management to look into the future in order to see areas where problems are likely to occur.  We enquire into the future with predictions, which tend to reduce future uncertainties.

The economic environment is filled with foreseeable and unforeseeable events.

These events in the economic environment are built into the budget.

Budget is futuristic and because of this, those who make the budget try to look into the future when making it.

In economic theory, resources are said to be scarce and have alternative uses.

In order to derive maximum benefits, these resources have to be used effectively, efficiently and prudently.

Scarcity of resources does not mean that they cannot be found in the market, but because they have alternative uses and human wants are unlimited and also they are not free of charge.  The expenditure on them should be maximized.  The need to carefully plan for our resources cannot be over emphasized especially at critical time when the country is experiencing excessive inflation, low level of wages and salaries.

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THE ROLE OF BUDGETING IN PUBLIC SECTOR MANAGEMENT, (A CASE STUDY OF ETHIOPE EAST LOCAL GOVERNMENT AREA OF DELTA STATE). A RESEARCH PROJECT MATERIAL ON ACCOUNTING

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