Impact Of Budgeting And Budgetary Control On The Performance Of Local Governments Institution (A Case Of Ikwuano Local Government)

ABSTRACT

The purpose of this study was to examine the impact of budgeting and budgetary control on the performance of local governments' institutions. (A case of Ikwuano Local Government). Generally, as was confirmed by the references of some previous research work, organizations flourish and perform better when they establish budgets and work towards attaining them, since resources are scarce. However, in recent years, local government's performance has been unsatisfactory and unproductive. Therefore, in order to ascertain whether the budgets and budgetary control system of local governments are responsible for such negative developments, the researcher set out to examine the subject matter. This in turn, prompted the adoption of some methods and techniques. This included sampling procedure, the use of questionnaires, and review of approved estimates and actual of the Local government. The findings obtained showed that, though local governments make budgets, they lack effective budgetary control systems which has accounted for the low performances (actual revenues• and expenditures). Hence, in conclusion, local government will function much better, if their budgets and budgetary control system were dependent on the goodwill and cooperation of its participants. I therefore recommended that staffs as well as heads of department be acquainted with budgetary control system, as well as establishing ground rules for budgetary implementation which should be observed strictly.