Effect Of Budgeting And Budgetary Control On The Profitability Of Public Enterprise (A Case Study Of Enugu Electrical Distribution Company):- Nwogwugwu Philip

ABSTRACT

This research is aimed at evaluating the effect of budgeting and budgetary control on the profitability of public enterprise: A case study of Enugu Electrical Distribution Company, Abuja. Budgeting according to (CIMA) is defined as a formal plan of action expressed in monetary and quantitative terms prepared and approved prior to a defined period for the purpose of attaining a given objectives. This research identifies how budgeting and budgetary control can affect the profitability of public enterprise. Therefore to achieve the aim of this research. The researcher collected data from EEDC PLC, Abuja, FCT and researcher hypothesis were tested using simple regression technique. The study reveals that budgeting and budgetary control is widely recognised means of ensuring optimally, efficiency and effectiveness in resource use. Thus, it is obvious from the findings ofthis study that inspite of the harsh and often unpredictable economic environment in which these organizations operate, budgeting has proved an indispensable managerial tool at their disposed for the attainment of corporate goals. Top management should always be proactive and display a high level of genuine commitment since lack of top management commitment could jeopardize the success of the entire system. Budgets should always be properly analyzed and appraised before implementation. More-so, a continuous follow-up mechanism should be put in place to monitor the progress and make adjustments when and where necessary.