The goal of any economy is effective performance or attainment of pre determined goals at the least possible cost. One mechanism for ensuring effective performance is the budget.

For any organization to grow well, it must plan. Planning, therefore means the setting of organizational goals and the means of a chewing it. Planning involves deciding on what to do in advance, how to do it, when to do it and who to do it. Planning is a very essential process for an organization to succeed. Budgetary process guides the planning system. An economy that fails to plan has already plan to fail.

The oxford dictionary of accounting defines a budget as “A financial or quantitative statement prepared and approved prior to a specified period, containing the plans and policies to be pursued during the period”. The states. Budget is prepared higher degree of complexity than budget prepared by business organization.

1.1 STATEMENT OF PROBLEM

The delay of the Nigeria budget is believed to be a problem to those in charge of the formulation of the budget and the problem involved in the implementation.

The delay in the presentation of a budget in any organization can adversely affect economy. The budget is a plan on how to achieve goals over a specified period. If the budget is not available, effective implementation of plan becomes nearly impossible, thus guiding an economy to a halt. The issue here is, can an economy operate without a budget? If it can, then how.

1.2 PURPOSE OF STUDY

The objective of this research is to address the critical management function of budgeting in order to underscore the view that success in any economy did not occur by chance, but by the outcome of creative instincts, the ability to take advantage of opportunities through deliberate planning. Budget are prepared in order to try to guide the firm towards its objectives.

This paper seeks to create awareness about the effect of an economy operating without a budge and to make recommendation.