CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
Budget which is a framework for revenue and expenditure outlays over a specified period of time usually one year is a fiscal policy instrument stipulating policies and programmes aimed at realizing the development objective of government. According to Ohanele (2010), a well-functioning budget system is vital for the formulation of sustainable fiscal policy and the acceleration of economic growth. Being a comprehensive income statement of the government, it is arguably a potent tool for the realization of government objectives of achieving economic growth and development. Government in an attempt to achieve macro-economic goals and objectives of price stability, economic growth, stable and full employment, infrastructural development as well as Balance of Payments equilibrium, initiates several types of budget such as Balanced, Surplus, Deficit, development as well as supplementary budget. Budget being an important economic policy instrument of government reflects the government priorities regarding her social and economic policies. It also translates policies, political commitments, campaign promises and goals into decisions regarding where funds should be spent and how money should be collected.
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