Saturday, 6 July 2013

NIGERIAN BUDGETING PROCESS


NIGERIAN BUDGETING PROCESS AND THE MAGNITUDE OF BUDGET VARIANCES

 

Abstract

This paper examined the problems of budgeting process and fiscal management as signified in the magnitude of budget variances and the driving external factor of oil revenue contributions. The federal government expenditures and finance-ability remain major fiscal challenges in economic management. Documentary evidence and data sources were used. Descriptive statistics and correlation analysis form the basis of data analysis. The decisions relating to the scale of government expenditures have also been related to internally generated tax revenues and mainly by the impacts of oil revenues. This paper has shown the relative impact of revenue and expenditure miss-match on fiscal management, emanating from faulty budgeting processes especially inadequate public finance data for revenue and expenditure forecasting, for an effective appropriation process. The commendation that emerge is that effective budgeting and government grip of budget deficits and surpluses is inevitable in aligning with investment planning as well as appropriate financing of priority projects. Efficient allocation and management of off-budget receipts at both federal and states levels should be legally mandated.

SULEIMAN AS ARUWA & JIMAH O ABU
Department of Economics and Management Sciences,
Nigerian Defence Academy, Kaduna
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