AN ECONOMY WITHOUT A BUDGET

By

AGBESE BLESSING LUCY

Presented To

Department of Accountancy

TABLE OF CONTENT

Title page ii

Approval page iii

Dedication iv

Acknowledgement v

Table of content vii

CHAPTER ONE

1.1 Introduction 1

1.2 Statement of study 2

1.3 Purpose of study 2

1.4 Significance of study 3

1.5 Limitation of study 3

1.6 Scope of study 4

CHAPTER TWO

Literature review 5

2.1 Introduction 5

2.2 The origin of budget 6

2.3 Definition of budget 7

2.4 advantages of budget 8

2.5 Objectives of budget 9

2.6 The composition of budget 9

2.7 Budgeting process 10

2.8 Key institution involved in budget preparation 13

CHAPTER THREE

3.1 Summary of findings 14

3.2 Recommendations 14

3.3 Conclusion 15

References 16

CHAPTER ONE

1.1 INTRODUCTION

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 achieving it. Planning is a very essential process for an organization to succeed. Budgetary process guides the planning to 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 prior to a specified period, prior to a specified period, containing the plans and policies to be pusued during the period". Its management prepares the States budget and the process involves a higher degree of complexity than budget prepared by business organization

1.2 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 people involved in organization can adversely affect the economy. 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?

1.3 PURPOSE OF STUDY

The objective of this research is to address the crified management function of budgeting, in order to underscore the view that success in any economy does not occur. By chance, but by the outcome of creative instants, the ability to take advantage of opportunities through deliberate planning.

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

It would also oblige government into making an early study of its problems, signifying and instilling into the government the habit of careful study before reading the budget.

1.4 SIGNIFICANCE OF STUDY

The study would enable the executive arm of government to know that it is not enough to prepare a budget but its timely implementation is of this study is therefore undertaken to exam the causes and the possible ways of eliminating delay in budget preparation.

1.5 LIMITATION OF STUDY

A research of this nature demands many things for the realization of the goals. These goals were pursued with certain hitches and constraints.

It is not very easy to get all the information needed for the research. As a result, only a few institutions are chosen out of many for the information needed for the work.

1.6 SCOPE OF STUDY

We know that the delay in budget is now increasing as inevitable in development economy. However, this work will limit its scope of study to same institution in Nigeria, it is only the planning and budgeting section that will be considered, so that the conclusion as a result will form a basis for making generalization for the whole economy on the reasons, causes and effect of delay in preparing budgets.