THE ROLE OF BUDGETING IN THE PRESENT NIGERIA EONCOMIC SITUATION (A CASE STUDY OF INSTITUTE OF MANAGEMENT AND TECHNOLOGY I.M.T)
Budgeting have a role to play in this present economic development of Nigeria. Budgeting which is defined as a financial statement prepared and approved prior to a defined period of true of the policy to be purpose of attaining that period for the purpose of attaining a given objectives is primarily a process of planning and control. A well prepared budget provides management with a planned programme based on research by the entire organization in addition, a carefully planned budget provides owing to co-ordination the various actions of the organization. Budgeting is the most comprehensive financial technology widely used within an organization when it is properly applied as a management process and for unites all parts of the institution and all aspect of management task into one complete management approach for profitability budgeting positions one’s mind of the actual result of outcome with the predestined plan mother worlds with good budgeting the result of every effort can be forecasted through a good budgeting by experts there will be a standard economy, budgeting reduce wastage of manpower it also reduce wastage of finance. Therefore, in order to avoid problems in carrying or preparing budget, budgeting should be carried and exactly there way it is being laid down by the experts if there is any correction or variation for be made in future, the experts should be involved.
TABLE OF CONTENTS
Title page i
Approval page ii
Table of contents vi
1.1 Background of the study 1
1.2 Statements of problems 5
1.3 Objective of the study 9
1.4 Research question 10
1.5 Research hypothesis 11
1.6 significance of the study 12
1.7 Scope of the study 13
1.8 Limitation of the study 14
1.9 Definition of terms 15
REVIEW OF RELATED LITERATURE 19
2.1 History of budgeting 19
2.2 early history of inflation 22
2.3 Control of inflation 26
2.4 Accounting in I.M.T 28
2.5 Different view in budgeting. 29
2.6 Budgeting process 33
RESEARCH METHODOLOGY 36
3.1 Research design and area for the study 36
3.2 Population of the study 37
3.3 Sample and sampling procedure 37
3.4 Instrument for data collection 37
3.5 Method of administration of the instrument 38
3.6 Method of data analysis 38
DATA PRESENTATION 41
4.1 Data analysis 43
SUMMARY OF FINDINGS CONCLUSION AND RECOMMENDATION 71
5.1 Summary of findings 71
5.2 Conclusion 72
5.3 Recommendation 73
5.4 Suggestion for further study 74
1.10BACKGROUND OF THE STUDY
The world generally had been in a state of permanent economic crisis for guide sometime, every government and organization (public and private) round the globe is faced with the issue of how to combat economic depression and stabile their economic affairs.
In Nigeria presently, there has been the problem of unexecuted plans and abandoned project of the federal and state governments and industries not because there was no completion fund to compound these project to completion, but because of lack of well articulated plans and control measure coupled with scarcity of resources . institute of management and technology for instance have such projects which have been abandoned for years such as the uncompleted building in campus 11, the research institution (Bakassi) and many others.
Because of the above mentioned the researcher has decided to very but her project title, the role of budgeting in the present Nigeria situation, Budgeting evolved to and management optimize scarce resources which have alterative uses. Tertiary institution being a non profit making organization requires stability and order unit affairs in the face of inflationary economic situation facing Nigeria currently.
There has been to be a more certain long to improve the management function to planning and control so as to be able for fined its facilities and projects adequately, this is on explanation for the proving interest in the role of budgeting. Although budgeting has been scoured by some as exercise in futility because of is depending upon the fore casting future events which cannot before fold with precision is get being found by must business executive to be the best to find a tranquil harbour in the storm battered world economy.
Budgeting which is defined as a financial statement prepared and approved prior to a defined period of time of the poluing to be pursued during that period for the purpose of attaining of giving objective. (more, C. L and Jaekike, R.K managerial Accounting 5th ed. (USA, S.W. publishers (1980) is primary a process of planning and control. A well prepared budget provides management with a planned programmed based on research by the entire organization. In addition, a carefully pinned budget provides away to co-ordinate and various actions of the organization.
There are many interrupts in books, journals, magazines and newspaper on budgeting both this project will critically examine it role in non-profit making organization especially to institute of management and technology (IMT) Enugu.
The institute of management and technology came into life is a result of the merging of two schools-institute of administration and collage of technology in April, 1972.
In October of the same year a provisional council of the proposed new institute was appointed by the cast controls state government. The council was commissioned to determine and recommend to the government the institute that would produce high quality technologists as well as professional management manpower in subject area directed by the state and national needs. The council submitted if reports in early April 1983.
On 31st may 1973, edition No of 1973 titled the institute of management and technology (IMT) Enugu source senior staff establishment of IMT Enugu).
1.11STATEMENTS OF PROBLEMS
Polytechnics and other tertiary institutions in Nigeria or edicts by the government as a non-profit making organization most of their capital and recurrent expenditures are being financed by the federal and state government. And they are regarded as government parastals. Financing, tertiary institute in Nigeria requires a huge human and material recourse especially with their every increasing number disciplines students and staff coupled with one recent economic situation the role of funding and tertiary institute has become too heavy for the government to carry, therefore the financial position of our tertiary intuition has become deplorable.
With the above background in view the researcher is being spurred to investigate without bias the various alliances through which the institute of management and technology her income and how prudently she manages control and accounts for its.
Budgeting is futurities in nature and any attempt to quantitatively state the future is an estimate or at best approximation of the future events problem in budging is either over or under approximation. This is other worlds is variance, sometimes, the variance may be totally not of the range making its use for control purposed difficult.
a. There at of inflation is hard to predict so that budgeting for the price levels seems to blaringly guesswork.
b. The volume of activity cannot be foreseen limiting factors (mostly government policies) arise for restricts out put below budgeted levels.
Budgeting encompasses all aspects of organization activity such that any problem at one point of if generates multiple and effects. Because of this, it is feared that there will be problems of organization and attempts to into an optimal master budget may be unsuccessfully also, the human element in budgeting increase if probabilistic nature and therefore, is likely to make its more probabilistic. There may be struck and inadequate motivation. The period of high inflation rate as it now often goes with frequent wage salary negotiations and stick in adequate motivation is said to have always been a problem of budgeting since different workers are motivated differently according to their different needs. The problem of motivation must have made worse by the excessive loss of purchasing power of naira in the foreign exchange market this is because of financial incentive beloved to be main motivational motioned desired and practiced in Nigeria. This is also because where the level of education is low and where skilled manpower is short in supply, the highest level of aspiration of many workers remains the in range of satisfying the lower level needs which more often that not tree of emotion (emotional distress set in which management is not committed, educated persuasive or intelligent enough to connive its subordinate that budgeting is a positive device to help management choose and reach goals when this happens subordinate and executive manage may like budgeting to strict they off and pressures devices as cure all the control aspect of budgeting may have a number of budgeting may have a number of serious problems to over come in applying theory in practice all the problems, aforementioned, where in existence jeopardize budgeting in the face of inflationary pressure with due consideration to these and other problems suggestion for their possible solution are made to other problems suggestion for their possible solution are made to enhance budgeting in the face of inflationary pressure, in tertiary institution.